Monday, May 17, 2010

HIPs on the way out?

HIPs abolition order is signed and ready 17/05/2010 (extracted from lettingsearch.co.uk)

An order to suspend HIPs has been signed, with the announcement of a suspension due this week as Parliament convenes.

According to well-placed sources, the order was signed on Friday morning.

The HIP industry is anxiously awaiting developments, and could mount a legal challenge to the suspension.

A note from the HIP Reform Group sent to its members says it is “firmly of the view that this would amount to an unlawful use of the statutory power (section 162). It could therefore be challenged in the Court. ??“Suspension of the HIP would kill our industry overnight. Not only would the HIP providers be affected, but the EPC market would also be instantly killed as responsibility for ordering the EPC would be left with the vendor. Thousands of jobs will be lost and livelihoods will be lost.”

The HIP Reform Group has called on all its members to lobby MPs and housing minister Grant Shapps.

Meanwhile Knight Frank called for the abolition of HIPs to go yet further, with the EPC pushed to the back of the transaction.

The firm said: “Only if this happens will the full damaging legacy of HIPs have been removed.”
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