In response to the news that repossessions have risen by 70%, the Local Government Association (LGA) has warned that five million people could be waiting for a council house by 2010.

Chairman of the LGA Environment Board, Cllr Paul Bettison, said: "With the banks overstretching their credit facilities it could well be the case that in the coming months councils will have to help pick up the pieces as people end up on social housing waiting lists. Even when the economic good times were rolling, councils saw ever increased pressure on their social housing stock. An average of 90,000 households join the waiting list ever year and we expect this to rise.

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"Councils want to provide decent homes quickly for those who cannot afford to rent in the private sector or buy their first home. Councils have been hamstrung by the lack of freedom to borrow off council assets to invest in building or buying new homes for those who need them most. Town halls also need more flexibility to use existing housing stock.

"Social housing has to be a top priority because the harsh reality is that fewer people are getting on to the housing ladder."

(CD/JM)