Increase in number of home repossessions

The number of repossessed homes increased by 68 per cent last year, according to new figures from the Financial Services Authority.

A total of 46,750 properties were taken over by lenders during the year, up from 27,900 in 2007.

According to the City watchdog, there was also a steep rise in the number of people who fell behind with their mortgage repayments during the final quarter of the year.

Around 68,000 people got into arrears during the period, a 13 per cent increase compared with the previous quarter, which had seen a 10 per cent rise.

By the end of last year, 377,000 homeowners were behind with their mortgage, nearly a third more than at the end of 2007.