Quote:
Originally Posted by Ignitionnet
Not at all, these vacated would lead to those lower in the ladder moving up the chain, in turn leading to those below them moving up. One major thing keeping these larger properties unaffordable is their scarcity, this would improve their supply and reduce prices.
It improves supply and lowers prices throughout the chain by reducing the amount of property wasted thus reducing demand on stock - 3,000 people can go into 1,000 fully occupied 3-bed homes fine, with 2 unoccupied bedrooms in each home you now require 3,000 of them. Simple.
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I'm not sure the abolition of stamp duty for over 60's will be enough ,for example if a pensioner wishes to downsize and sell their £250,000 house they would normally pay about £7,500 stamp duty but the value of the house they are selling may be £10,000 or more less because of the influx of properties onto the market ,most people tend not to sell when prices go down