The plans are revealed in the party’s Housing Policy Green Paper released today.
It is also proposing to use some of the proceeds from an annual levy on non-domiciled workers to exempt first-time buyers from paying Stamp Duty on homes under £250,000 – meaning nine out of every ten first-time buyers will not pay the tax.
Peter Bolton King, chief Executive of the National Association of Estate Agents welcomes the confirmation that they will abolish HIPs.
King says: “The NAEA has long called for HIPs to be abolished and I am personally pleased that Shapps has taken on board our point of view – a point of view shared by the vast majority of property professionals and, we believe, the vast majority of consumers.
“In our opinion HIPs became untenable once the government’s own statistics revealed that 77% of house-buyers paid no attention to them, and I would now call on Alistair Darling also to commit to scrapping them in this month’s Budget.”