Housing laws in England and Wales are set for a revamp following the announcement of new legislation to enforce extra regulation on the property market.

Tenants and homebuyers will be offered greater protection under the deputy prime minister's Housing Bill.

"Legislation will be introduced on housing that will help create a fairer housing market and protect the most vulnerable," the Queen said in her annual address to parliament on Wednesday.

But controversial plans to remove housing benefit from anti-social tenants have been dropped amid fears of a Labour backlash.

Housing groups argued that the plans would prove unworkable and could force some households into extreme poverty.

John Prescott's bill will introduce mandatory home information packs for buyers, which seek to improve the accuracy of information provided by sellers and agents.

It is thought that fines will be imposed on those found guilty of providing misinformation, although the offence is likely to be a civil, rather than criminal, issue.

In addition a Housing Health and Safety Rating System will be created to replace the current housing fitness standard.

Fulfilling a Labour Party election manifesto commitment dating back to 1997, a licensing scheme for houses in multiple occupation (HMOs) will also be introduced.

And social housing is to receive a boost with the creation of a post of Social Housing Ombudsman for Wales and the provision for more money to be given to private contractors for low cost properties to be built.

But despite a recommendation from the Office of the Deputy Prime Minister select committee, a national rent deposit scheme will not be established.

MPs had proposed protecting tenants against unscrupulous landlords who hold on to cash unfairly.

Conservative spokesman David Curry said the sellers packs would increase regulation without benefiting homebuyers.

'The introduction of sellers packs in the Housing Bill will do little to address the real problems of those buying and selling, namely, to stop gazumping, speed up price negotiation, obtain finance, eliminate buying chains and delays in the legal work," he said.

"These packs could amount to a vast increase in state control over house buying and selling. They will make things worse, not better."

And Liberal Democrat spokesman Ed Davey agreed that the packs were taking government influence in housing too far.

"Home information packs are a damaging and unnecessary over-regulation of the housing market," he said.

"Fewer homes will be put up for sale, as people wanting to test the market will simply not pay this new poll tax on moving home.

"Making these packs compulsory is the real mistake. This is the nanny state entering the Englishman's castle."

The Local Government Association welcomed the announcement of the bill but said it should focus more on fire risks.

"The proposed legislation is a victory for the LGA - which has campaigned for the introduction of these measures for several years - and for common sense," LGA housing executive chairwoman Ruth Bagnall said.

"The new licensing scheme will give local councils the power to ensure better protection for some of the most vulnerable tenants in the country.

"However, the bill must do more to tackle the biggest threat faced by HMO tenants - fire. Shockingly, more than a third of fire deaths and injuries occur in HMOs.

"The government must take action to protect those who are at risk by setting out national fire safety standards for HMOs. Without these, lives will continue to be lost."

Adam Sampson, the director of homelessness charity Shelter, said the bill would be a "great step forward" in housing policy.

But the National Union of Student condemned the absence of the rent deposit scheme.

"The misery caused by unfairly withheld and deducted deposits is not something exclusive to students," NUS vice president Verity Coyle said. "This crucial piece of legislation has disappeared from the bill."

The Queen also announced that Prescott's Planning Bill, which ran out time in the last parliamentary session, will be brought back this year.

The deputy prime minister said together the two initiatives will "make an important contribution to our vision of creating sustainable communities".