A stark warning to homebuyers that mortgage lending could halve this year on Friday prompted a pledge from Alistair Darling that he would do “everything I possibly can” to restore normality to the housing market.

The Chancellor’s comments – which came after the warning from the Council of Mortgage Lenders – point to an increasing likelihood that the government and Bank of England are poised to announce plans to take over the risky mortgage assets that banks cannot sell – in an attempt to unblock the lending markets.