The housing sector has become

In concept the HIPs were a noble idea, provided they could deliver the benefits that were promised.

However, all we seem to have now is a very much denuded product which is getting worse. The home condition report disappeared as a mandatory item last year over fears of a shortage of inspectors, but we are still left with the energy efficiency report which will also require a visit from an inspector.

When you tie in the costs of HIPs with the increase in house prices and how that affects inheritance tax liabilities you have to wonder what government policy is all about.

For many families the only real asset is the family home and, with the increase in the number of children having to live at home because of difficulties getting into the housing market, passing on the home might be only practical way of keeping a roof over your childrens’ heads.

So if, on inheriting the family home, someone is faced with a large inheritance tax bill, the only option to pay that bill may be to sell up and move. Great.

The explosion in house prices is fine from the government’s point of view, of course – it means a higher take from stamp duty as well as inheritance tax.

What is missing is equity. I know of people whose children are on free school meals yet would have a big inheritance tax bill because of the notional value of their family home. Moving for them is not possible because of the stamp duty and other costs.

This is going to become a more prominent issue as the effects of house prices roll out across the UK and ordinary people become aware that they are caught in the tax trap.

Gordon Brown has become dependent upon the taxes raised from this fiscal drag to fund his expenditure programme, which has been of enormous benefit to the construction industry. It is going to be difficult to reduce the tax take from a government with such a big spending programme.

Housing policy is full of contradictions. We don’t have enough houses, prices are rocketing, young people and key workers find it impossible to live and work in certain areas, moving has become very expensive with the cost of home-sellers packs, stamp duty and estate agent fees on inflated prices.

I must conclude that the government is so fed up of being in office that it wants to throw the next election: its so-called housing policy is a vote loser if ever there was one.