More homeowners could face repossessions in an economic downturn, because the government has cut back benefit support for homeowners, an industry body has warned.

Benefit reforms in 1995 slashed the responsibility of the government to provide a safety net, but only a small portion of homeowners have taken out Mortgage Protection Insurance (MPI) since then.

Since 1995, the waiting period for entitlement to benefit help with mortgage interest has been increased to 39 weeks.

The Council of Mortgage Lenders (CML), the mortgage industry trade body, is concerned that people who can not afford insurance will see their homes repossessed when there is a significant rise in unemployment.

CML wants the government to end discrimination against homeowners.

For example, homeowners - unlike tenants - can not qualify for Housing Benefit.

CML's Deputy Director General Peter Williams said: "The government, lenders and insurers must continue to work together to create fully sustainable homeownership."