Retirement specialist Saga has called on the government to introduce stamp duty breaks for retirees downsizing to a smaller property, in a move it claims would put more than 100,000 houses on the market.
The policy, claimed Saga, would both help young families get on the housing ladder and help retirees release equity in their property to go towards retirement income.
Quoting research by the Centre for Economic and Business Research, it claimed such a reform could "liberate" 224,000 bedrooms, putting up to 111,000 family homes on the market.
Saga’s director of communications Paul Green said: “Our research shows a third of over 60s want to downsize but the cost of moving is a real barrier to people changing homes in retirement. Stamp duty imposes an effective tax on them doing so.”
Saga claimed the costs of this reform would be "modest", and could even lead to a net gain in stamp duty revenue.
The proposal was part of a wider set of proposals delivered to chancellor Philip Hammond ahead of his inaugural Autumn Statement next month.
The other headline proposal was a radical simplification of pension tax relief, that would replace the current marginal rate-based system with a flat rate of tax relief.
“Our polling demonstrates that matched contributions up to a set limit would be fairer than the current system, which benefits higher rate taxpayers disproportionately, and would encourage more saving,” Mr Green said.
“The government should take a leaf out of the supermarkets’ success and introduce a 'buy one, get one free' approach with the government or employer matching every £1 an employee saves.
Other proposals included more flexibility for individuals to draw down from pensions to fund care home costs, and National Insurance breaks for companies employing the long-term unemployed.
Saga also called for an abolition of a "stealth tax" on the self-employed, which sees them continuing to make National Insurance contributions after age 65, when other employees stop contributing after that age.
james.fernyhough@ft.com
