Homeowners are staying put as Stamp Duty, high house prices and the stress of moving stop people from making a move, according to research from the HomeOwners Alliance.
One in five UK homeowners (19%) thought about moving in the past two years but decided against it.
House prices and the stress of moving were each named by 35% as the main reasons for not going ahead.
Meanwhile, moving costs put off 28% and 27% said they could not find a suitable home.
Stamp duty was the reason for 24% of homeowners who wanted to move but didn’t.
For a family looking to buy a £400,000 home, Stamp Duty adds £10,000 to the upfront costs before legal fees and other expenses.
More than 800,000 homeowners have ditched moving plans over Stamp Duty in the last two years, according to the research.
People said they struggled to find homes that fit their needs or budget, whether it was bigger homes for families, step-free properties for older people, or affordable homes in the right area.
Paula Higgins, CEO of HomeOwners Alliance, said: “Our research reveals a housing market in crisis – not because people don’t want to move, but because they simply can’t afford to.
“With over 800,000 homeowners shelving their moving plans, we’re seeing families trapped in unsuitable homes, unable to upsize for growing children or downsize as they age.
“While house prices are difficult to control, the government does have levers it can pull and we hope to see this reflected in the Spending Review and the long-awaited housing strategy.”
Higgins added: “Stamp duty is acting as a handbrake on the housing market. When a family faces a £10,000 stamp duty bill just to move to a £400,000 home – before they’ve even paid for surveys, legal fees, and removal costs – it’s no wonder a quarter of potential movers are staying put.
“We also need the right mix of homes. Older homeowners need step-free properties, growing families need larger homes, and everyone needs options they can actually afford.
“The government needs to look at the existing housing stock and build homes that better suit their needs.
“Finally, although it may not grab headlines, making the home buying and selling process less of a Russian roulette game and more certain and streamlined would give people the confidence to move.”
