The Council of Mortgage Lenders (CML) has today cast further doubt over the likely success of Home Information Packs (Hips), which the government plans to introduce next June.

The government claims that Hips will speed up the home buying process and reduce the number of sales that fall through because they will include information such as land searches and a survey. Vendors will have to pay for a Hip before they can put their home on the market. This means that potential buyers will be provided with the vital details before they make an offer on a property.

However, according to the CML most mortgage lenders do not think Hips will result in a reduction in the number of failed property transactions. And less than 20 per cent believe they will bring substantial benefits to buyers or sellers.

This will not be welcome news to the government and other advocates of the new system. Only last week, mortgage lender GMAC published a research paper it had commissioned from Oxford Economic Forecasting (OEF), an independent consultancy, which concluded that Hips will result in a reduction in the number of houses on the market.

The OEF thinks that the £600 to £1,000 cost of a HIP will deter people from putting their home on the market.

Stewart Beaseley, chief executive of the Home Builders Federation, said: "Hips were intended to help consumers make informed decisions. The latest research, however, shows that they could have a serious impact on the housing market, with significant consequences for housing supply and affordability, as well as jobs and the economy.

"We need to ensure that consumers do not become the unintended losers of a scheme set up to serve their interests."

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