The New Local Government Network (NLGN) believes that authorities should offer below market rate mortgages to stave off repossession and eviction, prop up the housing market to prevent remortgage difficulties, and support first time buyers to buy locally.

However, head of housing and communities at Aylesbury Vale District Council, Sheila Franklin, said the proposal was not something they would consider, and that their resources would continue to be put into helping householders manage their budgets more effectively.

For the year up until April 2008, the council had helped 22 households in mortgage arrears and under the very serious threat of losing their home avoid eviction- on many occasions providing financial advisors at eviction hearings.

This figure is down three from 2006/07. During each year the council had accepted as homeless two households because of eviction due to mortgage arrears.

Mrs Franklin said: "We are monitoring the figures, but we have not yet seen an increase and so we think our efforts along prevention lines are being effective so that's where our resources will be for the time being."

"The thing with the credit crunch, if you are having difficulty paying your mortgage because it has gone up the thing to do is prioritise your debts," she added.

"It is very important to pay council tax, because if you dont you go to jail, and to pay rent or mortgage."

She added that despite the economic gloom, first-time buyers could benefit from lower house prices, especially with the number of small units being built in Aylesbury.

She recommended that first-time buyers look into the home-buy scheme in which an equity loan- repayable when the property is sold- can be given to households earning between #20,000 to #60,000 income.

The NLGN report also found that a substantial number of people in social housing earned enough money to rent property in the private sector.

Nationwide, 261,000 households in social housing earn more than £2,000 a month after tax, and paying significantly less rent than in the private market.

Mrs Franklin said: "People have a secure tenancy for life so there is nothing we can do about this, other than encourage people into the home ownership market.

"Many people's aspiration is to buy their own home because they gain on equity and they are putting their money into a long term investment."