The Labour Party has called on the Government and the Banks to devise an understanding to prevent an increase in home repossessions over the coming 12 months.

Leader Eamon Gilmore said where repayment difficulties exist, a mortgage should be suspended for a period.

He said rent allowance from the State should be paid towards such a mortgage rather than going to a landlord following such a repossession.

The Labour Leader said it is time for the banks to apply some common sense until the recession passes.