According to the Department of Constitutional Affairs, Q1 2007 saw a 1% increase in mortgage repossessions.

Data from the DCA reveal that, in total, there were 33,715 possession claims lodged against households in England and Wales in the first three months of the year, and 21,931 repossessions orders were issued by the courts.

David Stubbs, senior economist of Royal Institution of Chartered Surveyors, said: “The interest rate rises since August 2006 has clearly started to put some mortgage owners under financial pressure, and with further hikes on the way, household finances will feel the pinch, currently resulting in 52 repossessions per day.

”However, many mortgage owners who get into trouble with their payments are often able to avoid repossession by selling their home. The latter is only possible due to the present high level of housing demand created by a strong economy.”