Tories renew attack on Hips
The Tories have renewed their attack on Hips
Thursday, 11, Sep 2008 11:52
The Conservative party has renewed its call for the government to suspend home information packs (Hips) to help revive the housing market.
The Tories – who were consistently against the introduction of home sellers packs – claim as the property market grinds to a halt more incentives are needed.
However, much of the criticism of Hips at the time of their launch was down to the fact they would dissuade sellers from putting homes on the market to see how much they were worth because of the cost of the packs – currently averaging around £300 a time according to the National Association of Estate Agents (NAEA).
A spokesperson for the Conservatives, said: "Hips are an extra cost and an extra layer of bureaucracy which are stopping speculative sellers putting properties on the market."
However, the current market – hit by correction turning to slump and the lack of finance due the mortgage crunch – is dominated by a lack of buyers.
For sale signs line many streets of the country, but without a mortgage buyers are unable to move or unwilling to do so as prices fall.
Hips now seem like an irrelevance.
However, the Conservatives maintain the removal of Hips would stimulate supply of property on the market, and have pledged to scrap them should they win the next election.
Mike Ockenden, director general of the Association of Home Information Pack Providers (Ahipp), described the move "as a load of old rubbish".
"There are more properties on than the market than in recent years. It is pretty draft to say Hips are slowing the market."
He added new exchange ready Hips which are now starting to go on the market had in some cases speeded up property deals to seven days.
"It is the buyer side that is the problem, not the supply of property."
Last week the government launched its plans to revive the housing market - or at least put some lipstick on the property pig – including raising the stamp duty threshold to £175,000.
Other measures included a new £300 million shared equity scheme, a £200 million mortgage rescue scheme to help those facing repossession and a shortening of the period before claims can be made for income support for mortgage interest.
Commenting on the government measures, Michael Foster, MP for Hastings and Rye, said yesterday: “The UK housing market is suffering because of problems in the international financial markets.
"Hard working people deserve support from the government and action to protect them from problems that started far beyond our shores and this move offers clear support."
However, the Tories described the stamp duty plans as short-termism.
Philip Hammond, the shadow chief secretary to the Treasury, said, "This is more evidence that this is a short-term political rescue package for Gordon Brown rather than a long-term plan to revive Britain's ailing economy."