A leading anti-home information pack campaign group says the main cause of failed property sales is from a change in the circumstances of the buyer or seller. As Hips will not alter the circumstances of people, the packs will fail to prevent deals falling through, say the campaigners.

SPLINTA (Seller Pack Law is Not the Answer) analysed 1,870 property transactions set up in February 2006. By the middle of May 1,272 (68%) had successfully proceeded to exchange of contracts. 352 (18.8%) sales had fallen through, leaving 266 (14.2%) properties withdrawn or still on the market. 137 (7.3%) of transactions were the subject of a re-negotiation in the agreed price between acceptance of the original offer and exchange of contracts.

The study looked at the reasons why transactions broke down:

• 16 (0.8%) of sales failed because the seller received a higher offer from another buyer.
• 41 (2.2%) failed because of an adverse survey report.
• 15 (0.8%) failed because of a lender's adverse valuation inspection.
• 31 (1.7%) failed because the buyer could not get a mortgage.
• 76 (4.1%) failed because of a broken 'chain' - where a related sale or purchase did not proceed.
• 65 (3.5%) failed because of a change in the circumstances of the seller - e.g. job loss, bereavement, divorce etc.
• 108 (5.8%) failed because of a change in the circumstances of the buyer - e.g. job loss, bereavement, divorce etc.

The responders to the survey - estate agents from across the country - were asked to consider whether a Hip might have helped to save the aborted transactions. Knowing the factors that caused the failed deals, the agents reported that just 25 (1.4%) might have been saved by a Hip.

Nick Salmon of SPLINTA said: " The government thinks that Hip's will make property buying a more certain process but this survey points to the fact that they won't."

"Taken together the main cause of failed transactions is a change in the circumstances of the buyer or seller and you can't legislate for that."

"This study provides a warning to government that it should carry out much more extensive research of the Hip before proceeding."

However, the government view is that failed transactions run at about one in four - somewhat higher than the survey figures. Hips will also reduce delays and stress in the process as well as better informing buyers before they make an offer. According to the government’s measurements nine out of ten buyers are dissatisfied with the process.

Currently buyers and sellers do not have access to key information to inform their initial decisions. This means that buyers and sellers are negotiating and agreeing terms without the benefit of all the facts, which often causes problems later in the transaction, or causes it to fail altogether.