Shapps explains why HIPs will take 100 days to abolish

Tory shadow housing minister Grant Shapps has now explained why it might take 100 days for HIPs to be abolished – because it would actually be the shortest route. However, the 100-day period would have to include a consultation.

The Conservatives have repeatedly said they will abolish HIPs, with Shapps maintaining that he would do it immediately or “within days”.

However, at the Home Sale Network conference last week, Shapps mentioned for the first time the 100-day time lag.

Last night, a spokesman in his office told Estate Agent Today: “I think our process will be a consultation, followed by a Statutory Instrument to suspend HIPs, and then legislation to abolish them.”

HIP provider Peter Ambrose, of The Partnership, said he was astonished.

“It sounds as though the Conservatives have hit legal problems. They certainly don’t sound as confident as they did.

“Perhaps they have been spooked by the AHIPP threat of legal action.

“I am certainly very surprised indeed at the reference to a consultation. I would have thought that you would only need to have a consultation if you felt there might be problems.

“Also, all this is going to take Parliamentary time – and is a new government really going to prioritise this? I very much doubt it.

“Although there is a ‘self-destruct’ button within the HIP legislation, meaning that they can be suspended if they are not working, in fact HIPs can only be suspended in extraordinary circumstances – and a change of government would not be one of those.”

However, anti-HIP campaigner Nick Salmon said: “I don’t believe for one moment that this shows any change of resolve.

“The exact wording of the Housing Act 2004 clearly states that the Secretary of State has the power to suspend HIPs.”

It is understood that the Tories would use secondary legislation to get rid of HIPs. This would involve having to have a consultation period. However, using secondary legislation in this way would be very much quicker than introducing primary legislation.