Stamp duty should be cut for downsizing OAPs to free up more homes for younger people, former No 10 policy chief says
Calls have also been made for the Chancellor to slash stamp duty for first-time buyers
STAMP duty should be slashed for OAPs when they downsize in a bid to free up more homes for younger people, No10s’ former head of policy said yesterday.
John Godfrey, who worked for Theresa May until the summer, said the Chancellor should copy Australia to incentivise “under occupying” pensioners to downsize.
The Communities and Local Government committee heard there were now 8 million “under occupied” homes in England.
In some constituencies that made up almost half of households.
The panel of housing experts said there were few incentives on offer for cash-rich pensioners to encourage them to move out.
Mr Godfrey, now working for insurer Legal & General, said: “On stamp duty there is a model in the state of Victoria in Australia which gives a stamp duty discount to older people who are downsizing.
“It’s something that’s worth looking at, it basically mirror images what’s being done for first time buyers.
“Another idea is could you have a help to buy scheme for those who are downsizing too.”
It came as former Ministers and Tory MPs heaped pressure on Philip Hammond in an eve of Budget plea to abolish stamp duty for first time buyers to ease Britain’s housing crisis.
Stephen Hammond and Robert Halfon told the Chancellor “a cut in Stamp Duty could disproportionately benefit those in the least affordable areas.”
The supporters of the Tory modernising think tank Bright Blue said the sweeping change “would support young people who are struggling with saving significant amounts of upfront funding to purchase a house.”
The senior backbenchers said it would “be seen as part of a broader shift away from taxing property transactions, which is economically inefficient and gums up the market, towards taxing property assets.”
Robert Halfon said the move would help “people climb on the housing ladder of opportunity.
The former Education Minister went on :”Cutting Stamp duty will make a real difference to millions of younger people and young families across the country.”
And former Transport Minister Stephen Hammond added that it would be “a huge help to many first time buyers, bringing them closer to owning their own home.”
Tory rising star Alan Mak added: “Stamp duty is a big burden and we should cut or abolish stamp duty for first time buyers to help this key group get on the housing ladder.”