The recent cuts to stamp duty are more likely to tempt downsizers to take the plunge in the property market than potential first-time buyers.
A survey by developer Anwyl Homes found 45% of homeowners who are looking to buy a smaller property said the cuts would encourage them to buy.
This was more than the 30% of those who currently live in private rented accommodation, social housing, or with friends or family who plan to buy their first home in the next 12 months.
The survey also revealed a person’s age affected how likely the stamp duty cuts would encourage them to move. People aged between 25 and 34 are most likely to consider moving now (41%), followed by those aged between 35 and 44 (39%), 18 and 24 (33%), 45 and 54 (30%) and 55 and over (18%).
Missing out on the stamp duty cuts could potentially cost thousands of pounds, with savings for first-time buyers of up to £6,250 if the purchase completes under the current rules.
There is also currently no stamp duty to pay for anyone buying a property up to £250,000 – compared with the previous threshold of £125,000 – a saving of up to £2,500.
People who are looking for the next step up the property ladder – those who live in a home they own outright or with a mortgage who are looking for a bigger home – are most encouraged by the news with 50% saying the cut would prompt them to consider moving.
Sheldon Bosley Knight’s sales manager Morgan Rhys said: “The cut to stamp duty rates should be an incentive for first time buyers in particular who will be able to take advantage of quite a considerable saving on many homes.
“We have been encouraged by steady sales activity both before the mini budget and since but anything that can help those looking to get their first steps on the property ladder is to be welcomed.
“It is interesting to see more activity for those looking to downsize but this could be in part also due to the cost of living crisis. If the children have flown the nest it makes sense for people to downsize and save on their energy bills.”