The Stamp Duty Land Tax changes in the Autumn Budget in 2017 have enabled First Time Buyers to be able to save money by benefitting from the First Time Buyers relief. However, Stamp Duty Land Tax is still a large expense for those who are not able to benefit from this relief, such as people who are currently already own a home.
McCarthy and Stone have come up with an initiative for Stamp Duty Land Tax which could also help many pensioners. The Evening Standard has reported that McCarthy and Stone have “called on Westminster” to provide a Stamp Duty Land Tax exemption for the over 65s who wish to downsize. The idea is to provide a one off relief to people over 65, to enable them to purchase smaller properties such as retirement flats, and downsize from their current homes. According to the Evening Standard’s report, a survey has found that 22% of over 65s would be more likely to move if the relief was offered by the Government. The inspiration will mean people over 65 will have more money to spend for their retirement.
The initiative also has the potential to not only assist the over 65s, but it could help inject a positive move on the property market as a whole. If people over 65 took up the relief, the properties they own may be sold to fund the purchase of retirement properties. These properties would then be on the property market which could encourage others to also move home in order to purchase these properties.
We will have to wait and see whether the Government decides to make the incentive law or not. If they do, it could give a boost to the property market.