The British Conservative Party's claims that the government's homebuying reforms planned for next year may result in rising property prices have been dismissed as 'damn untruths' by those implementing them. From next June every home seller in Britain must prepare a Home Information Pack (HIP) that contains a surveyor's report and other details about the property. Now, a buyer must gather and pay for this information. HIPs are intended to speed up the homebuying process and reduce costs for first-time buyers. The Conservatives have pledged to axe HIPs if they are re-elected. The Conservatives fear the number of properties coming up for sale could fall by 30 per cent if the scheme is introduced. Homeowners who want to test the market will not because they will find the cost of preparing an HIP prohibitive, they warn. The Conservatives say this cut in homes for sale will lead to higher prices. Conservative member of parliament Greg Hands said: 'Even if only 10 per cent of properties were taken out of the supply side of the market, the likely result would be inflationary to house prices.' The Association of Home Information Pack Providers (AHIPP) denounced such criticisms as 'misinformation, misunderstanding and damn untruths'. AHIPP director general Mike Ockenden said it was highly unlikely the scheme's introduction would lead to fewer properties coming up for sale. 'People tend to move for reasons of necessity - for employment, divorce, death and for more or less space. Sentiment certainly affects the market but HIPs are likely to have a positive benefit, as they will undoubtedly prevent so many sales falling through,' Mr Ockenden said. 'One of our members who provides voluntary HIPs has seen the fall through rate drop from 26 per cent to fewer than 2 per cent.' He also denied that homeowners would have to pay #1,000 ($14,603) up front to have the packs prepared. 'An HIP may cost up to #1,000, but for an average freehold property a figure nearer #700 is anticipated. Sellers will not be asked to pay for the HIP up front. It will come out of the proceeds of the sale of the house. Much of the increased cost to a seller of procuring an HIP will be offset by a reduction in the costs that buyers have to bear. As most sellers are buyers they will get the benefit of this offset,' he said.