Changes to the government’s strategy on repossessions have been announced, after it found that the protection people receive often falls short of what is needed.

Many problems arise when a borrower rents out their property without the knowledge or consent of the lender, the government suggested, which contravenes their mortgage agreement.

Any mortgage arrears which follow then lead to the property being repossessed and tenants are not authorised to remain in the property.

"One key step has been to extend the notice given to occupiers of a property that a possession hearing will take place," the government proposed.

This will mean that occupiers have seven weeks’ notice of the hearing, potentially encouraging lenders to consider alternatives to repossession.

The Ministry for Justice reported in May that 22,609 mortgage possession claims were issued on a seasonally-adjusted basis in the first quarter of this year.

This was 42 per cent lower than in the first quarter of 2008 and 13 per cent lower than in the fourth quarter of 2008.