92% RISE IN HOME REPOSSESSIONS

“While the Government yet again bails out some of Britain’s floundering banks with billions of pounds, it is still seemingly unable to provide adequate support for millions of hard-working home owners.”

The figures show a growing number of people are on the brink of being ­repossessed. Around 340,000 have fallen behind with their mortgage
payments.

At the end of last year many banks announced a voluntary six-month delay on repossession orders but that has not yet stemmed the tide and Mr Sampson called on the Government to speed up policies aimed to help those at risk.

Gordon Brown announced last month that under a Treasury-backed insurance scheme, home buyers in ­financial difficulties will be allowed to delay interest repayments on their loans for up to two years.

But within 24 hours the £1billion package was unravelling as it emerged the proposed emergency mortgage “holidays” could help as few as 9,000 out of around 75,000 families who face losing their homes this year.

Mr Sampson said: “More than a month later home owners are still in the dark about who will benefit, while every seven minutes someone else becomes a repossession victim.”

Eddy Weatherill, chief executive of the Independent Banking Advisory Service, said: “The Government initiatives are too little and too selective. They are merely PR and hype and in the circumstances are a disgrace.

“They do not help the majority of vulnerable families now in serious trouble. We will see repossessions go beyond 1991 figures unless the Government makes vulnerable families their first priority.’’

Shadow Housing Minister Grant Shapps said: “Gordon Brown’s famous boast that he had ended boom and bust will provide no comfort for the families who were repossessed over the summer.

“Even more worrying, these figures are from before the banking collapse so they may be just the tip of the iceberg.

“The Government has shown incredible complacency. Mr Brown needs to pull his finger out and help the thousands of vulnerable families across the country.”

Citizens Advice Bureaux saw 35 per cent more mortgage arrears problems in the 12 months to the end of September 2008 compared with the previous 12 months, with 77,324 inquiries.

The organisation’s Sue Edwards said: “The FSA figures are deeply troubling but come as no great surprise in the current economic climate. Our bureau network is currently dealing with 325 new cases involving mortgage arrears every working day.

“One of the most worrying things is not just the sharp rise in repossessions, but a matching rise in the number of repossessed properties that remain unsold.

“This means that many of those who have already lost their homes continue to rack up substantial amounts of additional debt, as they are liable for interest and other charges until the repossessed property is sold.”

A Communities and Local Government spokesman said: “We are doing all we can to ensure repossession is always a last resort.”