Banks have called in housebuilders for urgent talks over claims that they are not telling the truth about the price of properties.

Greater use of incentives and discounting has led to fears that homes are not sold at the quoted sale price making lenders more cautious about granting loans.

The Council of Mortgage Lenders is in talks with the House Builders Federation and the House Builders Association about increasing the transparency of prices.

A spokesman for the CML said: “We believe most developers want to act responsibly but the current situation is misleading. We're not against using sales incentives, we just need complete transparency.”