The party is also proposing to use some of the proceeds from an annual levy on non-domiciled workers to exempt first-time buyers from Stamp Duty on homes under £250,000. This would mean almost half of all first-time buyers would not pay the tax.
Peter Bolton King, chief executive of the National Association of Estate Agents, has welcomed confirmation that the Tories will kill off HIPs.
King says: “The NAEA has long called for HIPs to be abolished and I’m pleased Shapps has taken on board our point of view, which we believe is shared by most property professionals and consumers.
“HIPs became untenable once government statistics revealed that 77% of house buyers paid no attention to them.”