With repossessions rising, housing minister Caroline Flint has unveiled a plan to prevent the trend.

Shared equity schemes will be extended under the plans and the Citizens Advice Bureau given an additional £9m over three years for debt advice to troubled homeowners.

But Flint has played down comparisons with the mass repossessions of the early 1990s which came as a result of a recession, insisting that "the fundamentals of the housing market remain strong".

The minister said: "We know that some borrowers are concerned about their mortgages as a result of the global credit crunch.

"Most lenders are now passing on interest rate cuts and we want to see the rest follow as soon as possible. But for the minority of owners who may need support and advice now, we want to ensure it is there for them in the right place and at the right time."

Flint also announced the expansion of free legal representation for those homeowners that find themselves at risk of having their proporty repossessed. 

And Gordon Brown is expected to make affordable housing the central plank of the draft Queen's Speech which is expected to be unveiled later this month.