Stamp duty bills trigger boom in equity release

PUNISHING stamp duty bills have helped fuel an equity release boom as older people rule out downsizing and seek alternative ways to unlock cash from their homes.

The tax is thought to have put thousands of pensioners off selling up, driving a surge in demand with a record £3.6bn withdrawn from houses in 2018, according to Key’s Market Monitor. It comes as calls grow for reform of stamp duty in next month’s Budget.

Research by Key’s Market Monitor found around 1.2m homeowners aged over 55 say they would definitely consider moving if the stamp duty was abolished for lasttime buyers. Nearly £14bn of equity has been released by older borrowers since 2014, when stamp duty on the priciest properties rose. This is more than twice as much as in the previous five years.