Government to offer incentive for older people to downsize

Speaking to ITV's Robert Peston, Housing Minister Gavin Barwell said: "If we can make it easier for elderly people to move into [sheltered] accommodation, it releases family homes that we’re desperate for. It’s a really interesting idea."

The new measures are rumoured to include changes to stamp duty charges or help with moving costs.

Other proposals expected in tomorrow's paper include a stronger focus on renters 'locked out' of homeownership, the freeing up of brownfield sites, but further protection of green belt land.

A DCLG spokesperson said: "The white paper will explore ways to stimulate the market. We want to make sure older people have a good choice of accommodation to help them to live independently for longer, and help reduce costs to social care and health systems."

However former RICS residential chairman Jeremy Leaf was critical of the proposals, asking: "Where are the specialist properties for these people to move into? There are none. It’s a great idea but why would they move if they have nowhere to move to? It needs to be thought through - big ideas must go hand-in-hand with big delivery."

Stephen Smith, Director, Legal & General Housing Partnerships, added: “The Housing Minister this weekend confirmed that the much anticipated Housing Whitepaper will include provisions for older homeowners looking to downsize. What shape this assistance will form, however, remains unclear. The last time buyer market is a hugely over-looked segment of the housing sector, with commentators and indeed the Government, often preferring to focus on the first time buyer end of the spectrum.

"However, older homeowners are pivotal to the health of the wider market. Millions of people across the UK are trapped in homes no longer suitable for their needs, due to the prohibitive costs of downsizing as well as a severe lack of suitable properties available for them to move into.  By building more properties which are designed with the older buyer in mind, and by incentivising last time buyers to move with an overhaul of the frankly outdated Stamp Duty tax, the Government could make huge strides towards redressing our housing crisis.”