New research from over-50s property specialists Regency Living reveals that while England’s upsizers remain committed to their long-term property ambitions, many are now postponing their plans until at least 2026 due to increased stamp duty costs.
In the Autumn Statement delivered in October 2024, Chancellor Rachel Reeves confirmed that as of April 1, 2025, stamp duty relief thresholds would not be extended.
As a result, the zero-rate stamp duty threshold has been reduced from £250,000 to £125,000, with rates of 2% applying to homes priced between £125,001 and £250,000, and 5% for homes between £250,001 and £925,000.
Properties priced between £925,001 and £1.5 million are now subject to a 10% tax, while purchases exceeding £1.5 million face a 12% rate.
INCREASED TAX BURDEN
These changes disproportionately affect upsizers, whose move to larger family homes often places them within the 5% bracket. Regency Living surveyed 1,000 upsizers – existing homeowners planning to purchase a bigger home – to gauge the impact of the increased tax burden on their plans.
The findings indicate widespread disappointment.
The findings indicate widespread disappointment, with 76% of respondents expressing frustration over the government’s decision not to extend stamp duty relief thresholds. More than a third (35%) have decided to delay their purchase until at least 2026, with half of those citing the need to save for the additional stamp duty costs.
Others are reconsidering their property search criteria, with 35% opting to expand their search areas to find more affordable alternatives. However, despite these challenges, most upsizers remain determined, with only 19% stating that the tax increase has completely derailed their plans.
Given that upsizers account for 70% of the homebuying market, the 19% opting out could have a tangible impact on housing market activity.
RIPPLE EFFECT
Tim Simmons, Sales and Marketing Director at Regency Living, warns that the changes could have a ripple effect, limiting opportunities for first-time buyers and tightening housing supply.
He says: “Upsizers are at the sharp end of these stamp duty increases. While first-time buyers typically face a 2% SDLT rate and high-end buyers can likely afford the 10% or 12% rates, it’s the middle-market buyers looking for modest family homes who will feel the pinch the most.”
He explained that stagnation among upsizers could impact the broader market, as first-time buyers depend on existing homeowners moving up the ladder to free up entry-level properties. Similarly, older homeowners staying in large family homes rather than downsizing constrains housing availability for upsizers, exacerbating supply issues.
And he adds: “When the usual homeownership cycles slow down, the ripple effects cause problems across the market.”
