The number of residential repossession figures in England and Wales rose significantly in the first quarter of 2006, according to the Department and Constitutional Affairs.

Actions entered by lenders, which represents the first stage of repossession, rose 29% over the past year to 33,442, the highest level since the third quarter of 1992. Orders made (orders made by courts to repossess properties) were 57% higher over the past 12 months at 21,997 in Q4. After falling 910 in the previous quarter, orders made rebounded by 3,213 in the first quarter, a 17% rise.

Slight rises in interest rates since the tail end of 2003 have been cited for the main reason behind the upturn in repossession activity. However, the quarter percent interest rate cut last August, has eased the pressure on household debt.

Worryingly, the number of households entering the repossession process is likely to increase further during the second quarter, due in part to rising unemployment levels, while there are suggestions that interest rates are set to increase later this year.