"Historically, the property market has been fuelled by people who will move ‘if the right thing comes onto the market’.
"When it does, this usually triggers several such interested parties to put their own houses up for sale, but this spontaneity has been thwarted by the HIPS hurdle, which is not only time consuming, but also costs the vendor several hundred pounds.
"Knowing that there is other interest in the property, the spirit of competition is thwarted, the houses don’t come onto the market and so the supply dries up."
Haward added: "HIPs have not produced a single tangible benefit for consumers and the fact remains that the vast majority of potential buyers who approach County Homesearch see them as completely irrelevant to their purchase. Equally, if HIPS were intended to improve the conveyancing process they have failed, failed and failed again.
"They are not even a significant tax raising vehicle. HIPs and housing transactions contribute to Government revenue via VAT and Stamp Duty but it is now clear that revenue has declined in both cases. Stamp Duty revenue from 2007 to 2008 has gone from £5.2billion to £2.4billion – a drop of £2.8billion.
"The market needs to get going again but buyer interest is soaring only to be frustrated by lack of stock. And part of the reason for the lack of homes for sale is that people are put off by having to have a HIP before they market their home. This is clearly an impediment to an improving market – which is why we are calling for the suspension of HIPs. A better system that does not disincentivise homeowners from putting their properties onto the market should be introduced instead."
Have your say on this story using the comment section below