Repossessions rise.Repossessed house for sale Leeds Wakefield Bradford

The repossession crisis could get as bad as it was in the early 1990s, the Liberal Democrats claimed today.

Vincent Cable, the Liberal Democrat Treasury spokesman, said that today's figures showing a 24% rise in the number of repossession orders was "very worrying".

"The level of growth of repossession orders suggests that we are on track for a repossession crisis very similar to the early 1990s," Cable said.

"It is absolutely vital that the government should intervene and require a proper code of conduct to be implemented by mortgage lenders.

"This should not just apply to the big banks but to the large number of secondary lenders who are using court action to pursue their debts in a very aggressive way.

"The Council for Mortgage Lenders' code of conduct should be put on a statutory footing for all repossession actions."

Today's figures show that there were 28,658 repossession orders against borrowers in the second quarter of 2008. That compares with 51,037 repossession orders in the third quarter of 1991, which was when the repossession crisis of the early 1990s hit its peak.

For the Tories, Philip Hammond, the shadow chief secretary to the Treasury, claimed today's figures illustrated "the human cost of Gordon Brown's economic incompetence".

Hammond went on: "He betrayed families by claiming he'd abolished boom and bust and encouraging a 'spend now, pay later' culture.

"Now times are getting tougher, thousands are losing their homes because they can no longer make ends meet.

"Lenders must now act responsibly - even if our prime minister has not done so - to minimise the number of people losing their homes."

Caroline Flint, the housing minister, said: "Whilst we are not seeing repossessions on the same scale as the early 1990s, we are making sure the right advice and support is available for the minority of borrowers who may need it at the moment because of global economic pressures.

"As well as expanding free legal representation in county courts for households at risk of repossession, we are providing more free debt advice, and are working closely with lenders to ensure that repossession is only ever a last resort.

"These services can make a real difference, with more than 80% of repossessions avoided when they are used. It is important that families who have concerns seek advice at the earliest opportunity, starting by speaking to their lender."

 This can only be bad news for hard pressed house sellers in Leeds and Wakefield were negative equity is becoming more common.