Speaking at the Conservative Party conference in Brighton, David Cameron and Shadow Chancellor George Osborne admitted that the current system had flaws.
Osborne proposed changes to inheritance tax and Stamp Duty thresholds for first-time buyers (FTBs), while the party would also scrap Home Information Packs (HIPs).
On the subject of HIPs, Shadow Housing Minister, Grant Shapps, admitted they had done little to improve the house purchase process. He said: “The experts ridiculed them. The industry doesn’t want them, and I can announce that the next Conservative government will scrap them.”
However, Shapps’ comments were lambasted by Jeff Smith, chief executive of HIP Payment Service, who said the Tory plans were ‘unmanageable.’ He said: “The suggestion that a Tory government would scrap HIPs is irresponsible and impractical.
“In reality, a Tory government would be unable to bring in any such changes until the courts had heard the necessary applications for injunctions, inevitably dragging it through the courts for a number of years.
“Scrapping HIPs will also endanger the occupations of thousands of people from energy assessors and home inspectors to HIP providers and all those running HIP-related businesses.”
However, Tory plans to abolish Stamp Duty for FTBs were welcomed by the industry.
Clive Kornitzer at Abbey Mortgages, commented: “Outside the actual cost of a home, Stamp Duty is the largest economic barrier to entry to the housing market.”
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