HIPs blamed for 37pc fall in the number of family homes up for sale

The HIPs became compulsory for homes with three bedrooms a month ago and for those with four or more in August.

Estate agents claim the regime is driving sellers out of the market, creating a property famine.

The market has also slowed down in the wake of higher borrowing costs, caused by five baserate rises in the past year and the impact of the global credit crunch.

The suspicion that HIPs are to blame is given credence by the fact the 37-percent fall is significantly higher than a reduction of 28 per cent in instructions for smaller homes.

A survey by the Royal Institution of Chartered Surveyors found 73 per cent of its estate agent members indicated a fall in the number of larger properties coming on to the market over the past month.

The proportion reporting a fall was not so great in London because the high price of property means the £300-500 cost of a pack is relatively small. Many agents in the capital are also offering free HIPs.

While the average reduction in new instructions for large properties was 37 per cent compared to the same period last year, the figure was even higher in some regions.

HIPs appear to be driving away the 20 per cent of sellers who have, in the past, put their home on the market 'on spec' to see if they can find a buyer or get a good price.

The RICS believe HIPs could cause real damage to the property market, which is fragile at the moment.

Evidence is emerging every day to show the market is cooling.

The Halifax reported this week that average house prices fell by 0.6 per cent in September and the Bank of England says home loan approvals are down by 9 per cent on last year.

RICS spokesman Jeremy Leaf said: "Although they are not the only factor, HIPs are continuing to have a detrimental impact on the housing market, in spite of assurances from the Housing Minister this would not happen."

The Government is expected to force in the HIPs regime for all homes by the end of this year. The Tories have pledged to scrap the packs.

House prices are running at more than five times the average first-time buyer's income in many parts of the country, a study has found.

Professor Steve Wilcox of the University of York found there were only a handful of areas where house prices were less than three times average incomes - the traditional multiple that mortgage lenders will offer.

Kensington and Chelsea was the least affordable area, with a house price-to-household income ratio of 9.23.

Eight other local authorities in the capital had ratios above 5.5. Sixteen of the least affordable areas were in the South West, with ratios ranging from 6.96 in Christchurch to 5.58 in West Devon.