Repossessions in England and Wales will probably soar this year and next, says a leading think tank.

The Centre for Policy Studies says in a report, 'Save 100,000 Homes from Repossession'.

If then patterns of previous recessions reoccur, says the report, repossessions could reach 145,000 this year with another 270,000 households receiving repossession orders. Current government plans were not likely to help most of the householders, the think tank says.

The CPS says a more effective approach would be to learn lessons from the 1990s recession when civil courts rather than government played a more helpful role in people keeping their homes.

The reports key points are.

- Expect 150,000 home repossessions in England and Wales both this year and next.
- Current Government proposals are unlikely to help more than a very small number of these households.
- Court guidance for dealing with repossession hearings should be improved to assist those in need. This would also help to maintain the correct legal and contractual framework for the mortgage industry.
- Assuming that the arrears patterns of the early 1990s were to be repeated, such a change in court practice could lead to 100,000 homes being saved from repossession.
- These proposals will only help those households which are considered by the courts to be able to repay their arrears and their mortgages. The risk of 'moral hazard' will therefore be minimal.
- These reforms would be practical; would take account of individual circumstances; would have a negligible cost for the taxpayer; and should be supported by the mortgage industry.
Some 45,000 homes were repossessed in 2008 - a 71% jump over 2007, the Centre said.

Robin Bowman