House repossessions soar but Government will only protect 1 in 25 families from eviction.

10.57.07am BST (GMT +0100) Wed 8th Apr 2009

Local Liberal Democrat parliamentary campaigner Sarah Carr has slammed as 'totally inadequate' a government scheme supposed to help families facing the loss of their homes. 231 repossession claims were issued in Hereford, Ross and South Herefordshire in 2008, and many more are expected in 2009. But only 9 families are likely to have their homes saved under the scheme.

The Mortgage Rescue Scheme was announced in November last year by the Government following an alarming rise in the number of people having their homes repossessed by mortgage lenders. But Labour ministers have restricted the scheme to only 6,000 homes across the whole of England. That means only one in 25 households facing repossession claims in the courts - the first part of a process mortgage lenders have to go through to repossess a home - will get help under the scheme.

Commenting on the figures Sarah said,

"The Mortgage Rescue Scheme was launched with a great fanfare by the Government in the autumn. But it is totally inadequate for the tidal wave of repossessions that local residents are facing. The idea behind the scheme is something Liberal Democrats have long been pushing - giving councils and housing associations the opportunity to help residents in mortgage arrears by buying a share in the equity of the home, or even buying it outright. The householders would then rent back their home, therefore avoiding eviction. But Labour have taken a good idea and then failed to make it a reality.

"Repossession is a terrifying reality for too many people in Herefordshire. The Mortgage Rescue Scheme needs to be expanded urgently or else residents will be face being thrown onto the streets."