Lynda Blackwell, mortgage sector specialist at the Financial Conduct Authority, is reported as saying: "Does there need to be thought given to trying to encourage older persons to actually move away - build proper housing for retired people in the right places?
"There is a debate to be had about whether the government's focus is actually in the right place."
But Saga’s director of communications Paul Green reckoned such talk is unacceptable.
He said: “Setting the generations against each other or talking about 'tackling older homeowners' is not just unhelpful it's insulting.
"If people have saved and paid for their house over their working lives, it's down to them if they want to fill it with family or live on their own.”
Saga instead suggested allowing one Stamp Duty free move for those rightsizing in retirement, a move which independent economists CEBR estimated would release 111,000 family homes onto the market.
Saga added that even with this freebee the government could reap £461m in Stamp Duty that would be generated by the house sales that might otherwise not have taken place.
He added: "If we want to tackle the housing crisis we need to do so holistically. First-time buyer schemes for the young are a good start, but we need to consider incentives to help encourage those that would like to move, to take that step.
“The FCA are right, we definitely need to do more and do it better, but using divisive language will only alienate the very people we need to help and encourage."
