With recession in the air, lenders are closed for new business and trying to make good their losses.

Recession is now a virtual certainty and already the UK housing market is in the doldrums. Since October 2007 average house prices have, according to Nationwide, fallen by 14.6%, and many commentators are predicting further declines by as much as 15% over the next 12 months.

The Council of Mortgage Lenders' statistics show that house purchase debt, remortgage debt and buy-to-let debt has risen by 90%, 365% and 1,350% respectively in the last nine years. As a result, there is every prospect that repossessions will soon exceed the numbers we saw during the 1990s property slump.

Worryingly, the evidence suggests the current situation will only get worse. Ministry of Justice statistics reveal a 17% rise in lenders taking steps to recover possession of properties during the last two quarters, and a 41% rise in completed repossessions over the same period. The figures show that solutions which fall short of eviction are becoming less common.

This is obviously bad news for those who are unable to maintain their financial commitments. It is also bad news for lenders, as their securities prove inadequate, and not good either for professional advisers, as lenders look to recoup their losses. Reviews of mortgage account losses by lenders in order to ascertain potential recovery targets is now commonplace. There is already an explosion of claims against surveyors and solicitors, but what we are seeing at the moment may be merely the tip of the iceberg.

What can be done to mitigate against this potentially significant exposure? The answer is to minimise claimants' aspirations as to recovery and limit those instances where litigation ensues. But this is easier said than done.