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The Council of Mortgage Lenders (CML) has rejected claims that the introduction of Home Information Packs (Hips) will damage the property market.

It has been claimed that the arrival of Hips in June next year will have a negative impact on the property sector by increasing the costs involved in selling a property.

However, a CML survey of its members has found that the majority of lenders are supporting the Hips scheme and are planning to offer their own services to produce the packs for sellers.

The home owner loans market could suffer a blow if many sellers decide that selling is too expensive and it is feared that the property sector could see a fall in prices, reducing the amount of money which could be taken out under a home owner loan.

But the results of the CML survey suggest that any such fall in prices will not be too harsh and therefore will not impact the home owner loans market significantly.

The report reveals that many lenders believe the property market will continue to perform well this year until Hips come into force in June, when a reduction in property prices is anticipated.

Therefore, it is anticipated that home owner loans will also be able to do well over the next 12 months, as more people look to unlock the equity in their properties through taking out home owner loans.