A general concern about the introduction of HIP’s is what effect it will have on the property market.
There is a strong possibility that it may cause a huge bubble effect, similar to that experienced in 1988 when double taxation relief was abolished. Those working in conveyancing at the time were absolutely inundated with work as people rushed through their property purchases before the guillotine fell. The moment the regulations came in, the market stalled and prices plummeted. The same could happen again: if HIP’s are introduced on August 1st 2007 for example, many will rush to put their homes on the market by July 31st for the double benefit of buying a property that has been marketed after that date which has a HIP, while at the same time having their purchaser bear the conveyancing costs on the sale.
Until the final draft of the HIP is seen and we can judge for ourselves whether we are prepared to rely on it for the largest financial decision we will ever make, caveat emptor, or buyer beware has never rung truer.
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