Hips still proving controversial

Industry insiders and government figures have reacted with disbelief and anger at Tory plans to launch a review into the UK's housing market.

The party announced on Friday shadow housing minister, Grant Shapps, would lead a review, seeking to find solutions to affordability issues which have arisen in the market in recent years.

A key tenant of Conservative plans is the scrapping of home information packs (Hips), which they see as unnecessarily bureaucratic.

"[The industry's] worst fears have been realised; Hips have introduced wasteful red tape and up front costs to the seller with little or no appreciable advantage to the buyer," said Mr Shapps.

However, the scheme was defended by the government.

"Hips and electricity performance certificates (EPCs) are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too," said a spokesperson for the Department for Communities and Local Government (CLG).

"With the roll-out to all properties, first-time buyers will see their upfront costs drop by receiving detailed information about their home for free for the first time."

Hips will become compulsory for all properties sold in the UK from this Friday.

The scheme is also not responsible for the present slowdown in the market, the government claims.

"All serious commentators recognise it is wider issues such as interest rates and other economic factors that impact on the housing market," continued the CLG spokesperson.

"An independent report by Europe Economics published recently found no evidence of any impact of Hips on transactions, prices, or mortgages."

The inclusion of Kirstie Allsopp, presenter of Channel 4's Location, Location, Location, in the Conservative's review process has drawn particularly harsh criticism from some.

"Throughout her entire involvement in the Hips debate, Ms Allsopp has failed to disclose the fact that she is Tory politician, and therefore has merely been an opposition spokesperson from day one," said Jeff Smith, chief executive of HIP Payment Services.

"The time has come for the industry to challenge this cynical and frankly absurd opposition campaign. The home buying and selling public have been constantly mislead and misinformed by the Conservative party and their spokespeople, and it is time the industry got together to have it out."