Stafford has emerged as one of the fastest-growing areas in the country for home repossessions, according to the latest statistics.

The affluent town might have been expected by most people to weather the credit crunch better than its less well-off neighbours.

But new statistics show that over the past few months, repossessions have exploded by more than 70 per cent, prompting fears of an increase in homelessness in the area.

With hundreds of families potentially losing their homes, the development also means local housing waiting lists could be made much longer. Council chiefs say they are helpless to address the problem as private borrowing is outside of their control.

However, they have pledged to support any local families facing the trauma of losing their homes in the current economic climate.

The Ministry of Justice figures published yesterday show that between April and June, there were 120 new repossession cases in Stafford, representing a staggering 71 per cent increase on the same period last year.

Worryingly, the new statistics also show a massive increase on the previous three months, which was already up on last year. Between January and April, 65 new orders were made – an increase of 25 per cent on the same three months in 2007.

The figures have also prompted the Legal Services Commission, the Government body responsible for providing legal aid, to set up a new scheme based at Stafford County Court.

Speaking today, Councillor Patrick Farrington, Stafford Borough Council’s portfolio holder for housing and communities, said: “In terms of mortgage repossessions, obviously they are related to houses outside the borough’s control – they’re individuals with private mortgages.

“From my perspective there is very little the borough can do in relation to the cause of that. But my team at the council provide a first-class service in terms of getting people to come to terms with the dreadful aftermath of a repossession.

“It’s one of the most traumatic things that can take place but they are there to help and advise in terms of rehousing and help with the points systems.”

In July, Stafford councillors anticipated a big increase in the number of people needing help with re-housing and a full meeting of the borough council approved a homelessness strategy for the next five years.

Councillor Farrington said the strategy would need to be “fluid” to cope with the difficulties with rising mortgage interest rates.