SDLT increase forcing upsizers to delay their purchases

The latest research from over-50s property specialists, Regency Living, reveals that the long-term ambitions of England’s upsizers remain intact despite stamp duty increases, but many have had to postpone their plans until at least 2026.

In Labour’s Autumn Statement, delivered back in October 2024, Rachel Reeves announced that as of the 1st April 2025, stamp duty relief thresholds would not be extended.

As such, the zero rate SDLT threshold has been reduced from £250,000 to £125,000; 2% is now payable on homes purchased for between £125,001 to £250,000; and 5% is payable on homes costing between £250,001 to £925,000. At the top end of the market, homes priced between £925,001 and £1.5 million are now taxed at 10%, while everything at £1.5m+ is subject to a 12% rate.

This change is going to have a particularly significant impact on England’s upsizers whose upgrade to a family-sized home is likely to pull them into at least the 5% threshold.

As such, Regency Living has commissioned a survey of 1,000 upsizers* (existing homeowners who are now planning to buy a new home larger than their existing property) to understand how their buying ambitions have been impacted by the increase in stamp duty.

The survey reveals that the majority of upsizers are understandably disappointed that the government didn’t decide to extend stamp duty relief thresholds (76%), and that for more than a third (35%) it means they are now going to have to postpone their upsizing ambitions until at least 2026.

Half (50%) of those who are delaying their purchase say it’s because they need to save the extra money required to pay the increased rate of stamp duty.

Meanwhile, 35% are now going to extend their property search away from their desired area in order to try and find a more affordable upsizing option.

Despite obvious financial concerns, and despite many having to postpone their buying ambitions, the increase to stamp duty has not deterred upsizers in the long-term, with only 19% saying this tax increase has completely ended their plans to buy a bigger property.

However, as previous research from Regency Living has recently shown, upsizers account for 70% of the homebuying market, so the 19% who say they are cancelling their upsizing plans is a significant number and could well have a noticeable impact on the housing market.

Sales & Marketing Director at Regency Living, Tim Simmons said, “Upsizers are, in many ways, going to feel the brunt of these recent stamp duty increases. That’s because first-timers are probably looking at a 2% SDLT rate, and those who are paying £1m+ can likely afford a 10% or 12% rate, so it’s those who are found in the middle of the market, looking to upgrade to a modest family home for which a 5% rate is charged, who will most feel the pinch.

When upsizers feel disincentive, it causes problems for buyers elsewhere on the market. For example, first-time buyers rely heavily on upsizers to vacate upgrades to larger homes and therefore sell their first properties, creating more first-time buyer stock. However, if upsizers choose to stay in their existing properties, first-timers are going to face reduced availability which might even cause prices to increase.

We’ve found the same problem also exists for upsizers themselves – older homeowners are choosing to stay in their large family homes despite their children having already left home, and when they decide not to downsize, they are withholding family home stock from the market, making life more difficult for upsizers.

When the usual homeownership lifecycles become elongated in this way, the ripple effect causes issues across the market.”