Nick today welcomed figures which show that the number of repossessions for 2009 was almost 30,000 less than the 75,000 figure originally predicted. At 46,000, the Council of Mortgage Lenders has confirmed that this is half the rate of repossessions during the last recession, when in 1991 alone over 75,000 households lost their home.

Nick says: ‘Every case of a person losing their home is personal tragedy. That is why I fully support the Government's measure to help keep people in their homes, which have meant that compared to the early 90s recession, fewer houses have been repossessed. If we’d repeated the Tory ‘sink or swim’ approach, house repossessions would have been very much higher.

This shows the positive impact of Labour’s response to the challenge of the downturn, including measures to help struggling homeowners and keep people in their homes.Unlike the 1990s, lenders must inform the local authority when repossession action is started, allowing councils to step in and offer advice and help. Unlike the1990s, there is FSA regulation which requires that repossession is always a last resort, with tough tests for lenders in courts and a new checklist for them to prove they have exhausted every possible option before taking action. And unlike the 90s, the Government has led the way from the start in providing targeted support schemes, including income support for mortgage interest, free legal advice, and the backstop Mortgage Rescue Scheme

By using the power of Government investment now, we are ensuring that Britain is better placed to make the most of the recovery. To cut this support now would put families at more risk of repossession’.

Michael Coogan, Director General of the Council of Mortgage Lenders, says: ‘The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates, and a great deal of concerted effort by lenders, Government and the advice sector to help borrowers to address financial difficulties when they occur’.