Although home information packs (HIPs) will not become universally compulsory until at least 2007, there is a huge volume of activity now needed to ensure their successful introduction.

As a first step, the Council of Mortgage Lenders (CML) says that the government needs to undertake a thorough assessment of what specific implementation costs will be involved, and then ensure that the creation of the new HIP regime is within this cost framework.

At present, the cost analysis is hazy at best, but it will be a crucial factor in determining what the market impact of the packs will be. Lenders' recent experience of the implementation of mortgage regulation demonstrates that costs in reality can far exceed early estimates - the cost of implementing mortgage regulation was around double the original cost-benefit estimates.

Another step that the CML urges the government to take, is to assess the risk of the pack distorting the flow of properties coming onto the market before or during the transition period, and manage it accordingly. A substantial programme of information and education for homebuyers, sellers, estate agents, lenders, conveyancers and valuers will be needed to avoid this.

The CML also issues a reminder that there are many significant areas of work needed to bring the home information pack up to scratch in time for a 2007 implementation. The home condition report needs to be made consumer-friendly (and will need testing); the databank to store the information needs to be specified and built; a large number of home inspectors need to be trained and qualified; their insurance arrangements need to be delivered effectively; and the format of the legal information contained in the pack needs to be made significantly more consumer-friendly. Estate agents, a major delivery channel for the packs, also remain unlicensed - a glaring anomaly in the successful delivery of the government's strategy in this area.

Michael Coogan, CML Director-General, commented: "By the time the packs become compulsory, they will have been a decade in the making. Consumers will not thank the government if they are not user-friendly after such a long gestation period. But there are still a number of gaping holes in the framework that need urgent attention and the full commitment of government to address."

"Lenders and the CML are committed to ensuring that the packs are as useful as they can be - and help to reduce stress and delays in the conveyancing process. It is now time to work together on the practical issues to ensure that the introduction of the packs does not inadvertently create unhelpful market distortions or load unnecessary costs on consumers."

The Housing Bill has now completed its passage through Parliament and is poised for Royal Assent. Home information packs are a key component of the government's package of housing reforms, intended to make home buying and selling more efficient, more certain and consumer friendly in England and Wales.

From 2007 sellers or their estate agents will be required to have key information available at the start of the process of marketing their home. This will be proceeded by a voluntary period of operation and a dry run in 2006 to ensure a smooth and successful introduction of the Packs.

Housing Minister Keith Hill told the Property Forum in London this week that the packs would help end a shambolic homebuying and selling process.

"At present nearly 30 per cent of transactions fail after terms are agreed," said the minister, "With the average cost of each failure at over £1000 per transaction, this leaves consumers footing a bill of £1 million per day in wasted costs. This is unacceptable."

"For the first time we will be able to require estate agents marketing homes for sale to belong to an approved redress scheme. This is something the public and responsible elements of the industry have been crying out for. It will guarantee home buyers and sellers access to redress and help hound rogue agents out of business."

The Minister said the legislation was particularly good news for the property professionals. "Property professionals and the rest of the industry now have the certainty they need to invest in the new business opportunities the Packs will bring to the buying and selling process."

"A growing number of estate agents and other businesses are already offering Home Information Pack services on a voluntary basis. This means that sellers will not have to wait to take advantage of this new process."