The number of people losing their homes after failing to meet mortgage payments jumped by 40 per cent in the first three months of this year.

The number of repossessions rose to 9,152 from January to March, up from 6,471 in the same period last year, according to figures published by the Financial Services Authority. More than 300,000 homeowners have fallen into mortgage arrears of three months or more, twice last year’s figure.

The statistics bear out warnings that the number losing their homes will reach 45,000 by the end of this year, compared with the 75,500 whose homes were repossessed at the peak of the 1991 housing downturn.

Alistair Darling, the Chancellor, acknowledged yesterday that the economic slowdown could be “pretty dramatic” and that collapsing confidence and more expensive borrowing were driving down house prices. He said that he was “looking at a number of measures” when asked about reports that he was considering plans for the suspension of stamp duty. “It is helping people that is important. I want to look at a range of options that will help people.”

Treasury aides said later that no final decisions had been taken on whether measures would be aimed at all buyers or only those buying their first property. Options include an indefinite suspension of stamp duty, a proposal only to defer the tax and a scheme to introduce tax-free savings accounts for those saving for a deposit for a house.

The option of giving all buyers a stamp duty holiday is being pressed strongly by the Royal Institute of Chartered Surveyors, which argues that it would help to free the market and increase lending.

The institute met Treasury officials in May to outline its suggestions and sent detailed proposals to the Chancellor last month. These are under active consideration. The plan, seen by The Times, urges Mr Darling to introduce a “short-term holiday” followed by longer-term reform. Stamp duty is levied at 1 per cent for houses between £125,001 and £250,000, 3 per cent for £250,001 to £500,000 and 4 per cent for £500,001 or more. Under the proposals, no one would pay duty on the first £150,000. There would be a 2.5 per cent levy for homes between £150,000 and £250,000 and a 5 per cent rate on homes over £250,000.

If Mr Darling pushes ahead with a suspension, he will be following in the footsteps of Norman Lamont who announced an eight-month holiday from the duty during the housing downturn of 1991. At the time it was claimed that the measure — which is estimated to have cost the Treasury £400 million — would save 40,000 additional repossessions. The evidence of its effectiveness was mixed, although many lenders argued unsuccessfully to have it extended.

Vince Cable, the Liberal Democrat spokesman, dismissed the idea as irresponsible. “The Government should not be trying to bribe people into buying houses in a falling market. With the economy grinding to a halt, we are already likely to see a shortfall in taxation. Suspending stamp duty, even on a temporary basis, will only make this situation worse. The falls we are seeing in the housing market are painful, but necessary, if homes are to become affordable once more for those not on the property ladder.”

Adam Sampson, chief executive of Shelter, the homelessness charity, said: “We see many homeowners whose lives are wrecked by some, particularly sub-prime, lenders racing to repossess. The regulator must clamp down on merciless mortgage lenders who are robbing people of their homes.” Lesley Titcomb, the FSA director responsible for the mortgage sector, said: Repossession has to be the last resort.”

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