The coalition is to announce plans next week to deal with the mortgage arrears crisis but it will involve the repossession of homes.

A loop-hole that currently prevents banks foreclosing on most properties will be closed with new laws.

The Taoiseach told a press conference at a review of the 2 years in office by the coalition that taking people's homes would be a last resort.

Enda Kenny says he wants to ensure most families in mortgage arrears are offered a solution within the next year.

And he says closing the legal loophole that prevents repossessions is necessary.

"I hope that next week we can issue a strategy that can deal with this, and reflect the lacuna that has been in the law identified for some time - which banks have been saying an impediment from them doing their business" he said.

"I want to see - and the Tanaiste wants to see - nobody lose their house where that's absolutely possible, nobody" he added.

Sinn Fein leader Gerry Adams says the government is simply patting itself on the back after two years in office but should 'take a hike' instead.