Jersey ministers reject stamp duty break for homeowners looking to downsize

Jersey ministers have ruled out introducing a stamp duty holiday for homeowners looking to move into smaller properties, saying there is insufficient evidence the measure would increase the supply of family homes.

Treasury and Resources Minister Alan Maclean said he and Housing Minister Malcolm Fery had considered the proposal as part of the draft 2027–2030 budget.

However, after reviewing advice from officials, housing market conditions and the potential impact on public finances, the ministers jointly decided not to take the idea forward.

The proposal aimed to encourage homeowners living in properties larger than they needed to move into smaller accommodation, a process known as “right-sizing”. The aim was to make more homes available to families seeking larger properties.

In a response to a written question from Reform Jersey deputy Tom Coles, Senator Maclean said stamp duty was not generally considered the main obstacle preventing older homeowners from downsizing.

Instead, he said the shortage of suitable smaller homes was a more significant barrier to people making the move.

“The analysis indicated that stamp duty is not generally regarded as the principal barrier preventing older homeowners from right-sizing,” he said.

Ministers also considered the potential loss of stamp duty revenue if a concession were introduced.

Senator Maclean said the government had concluded there was not enough evidence to show that the benefits of a stamp duty holiday would justify the cost to public finances.

Despite ruling out the tax change, ministers said they would continue to explore other ways of encouraging people to move into homes better suited to their needs.

Senator Maclean said they would consider “non-tax measures that may support right-sizing and improve housing market mobility”.

The proposed 2027–2030 budget is due to be debated by the States Assembly during the week beginning 7 December, alongside any amendments put forward by backbench politicians.