HOUSE sellers in London are likely to have to pay around £1,000 up front to produce a mandatory home information pack when Government legislation to revolutionise the sales process comes into force in 2007.

The industry now has until December 31 to voice its opinion of the draft regulations published earlier this month.

A statement signed by the partners or directors of 22 leading agents in the capital claims the additional costs will outweigh any possible benefits.

"By the Government's estimate consumers lose £350 million a year in the abortive costs of failed transactions but the extra cost of the pack will be well over £600million a year," forecast the agents.

They believe up to 30 per cent of potential sellers will decide not to bother once they realise how much they will have to pay up front.

"This reduction of supply will lead to intense upward pressure on prices," say the objectors. "Sellers will no longer be able to market their homes immediately as there will be an enforced delay of up to two weeks while the HIP is prepared."

The agents say lenders have so far failed to endorse the pack.

Also, they are under no obligation to accept the contents of the pack.