LABOUR LEADER Eamon Gilmore warned that house repossessions were "the biggest social ticking timebomb" in the State.

"If 2008 was the year that saw 100,000 people lose their jobs, then 2009 is shaping up to be the year when people's homes are repossessed," he said.

Mr Gilmore said that last Monday, 37 cases were brought by banks and building societies to repossess homes, and he said it was fair to assume several hundred homes had been repossessed without having to go to court.

Meanwhile, the Department of the Environment published a report showing that the number of people on council housing waiting lists had increased by 30 per cent to 60,000 in the three years up to last March.

"These were the three best years for housebuilding in Ireland, when one would have expected a significant return of houses under the Planning and Development Act 2000," he said.

Mr Gilmore said that the biggest fear people had was losing their homes. Urging the Government to take action, he said an arrangement was required whereby a mortgage could be suspended and that rent allowance could be applied to that home.

"Perhaps the rules of the mortgage interest subsidy scheme, which have not been changed for some time, can be revisited," he added. "It may be possible to apply shared equity through local authorities. Arrangements need to be put in place, through the State lending agencies, to assure people that they could stay living in their homes."

Taoiseach Brian Cowen said the Government's priority was to ensure, as much as possible, that mortgage arrears did not result in legal proceedings seeking repossession.

The Government had insisted that banks participating in the guarantee scheme confirm their compliance with the Irish Banking Federation's code of practice on mortgage arrears. That code had been operated successfully by banks in Ireland since 2000 on a voluntary basis, with its primary purpose to take every possible step to avoid recourse to repossession proceedings. The code stated clearly, said Mr Cowen, that in normal circumstances, the lender would not seek repossession until every reasonable step to agree an alternative repayment schedule had been exhausted.

Mr Cowen said about 7,000 people availed of the mortgage interest supplement scheme, while some 70,000 people were catered for under the rent supplement scheme. He added that about 50 houses had been repossessed by mainstream lenders last year, and recent statistics in court proceedings involving house repossessions indicated that there had been an increase in their number.

Mr Gilmore said the codes of practice referred to by Mr Cowen were drawn up during normal times. "These are not normal times," he added. "Many people have lost their jobs over the past year. Many more people are facing the prospect of losing their jobs or their businesses."

He said the mortgage subsidy scheme needed to be updated.

"Under the present rules, if one half of a couple is working 30 hours a week, and possibly earning a very low income, the couple is not entitled to the subsidy."