With increasing numbers not being able to pay the mortgage or rent, Landlord Assist, a nationwide tenant eviction service, have seen an increase in instructions from corporate bodies to remove squatters from properties.

In fact the number of landlords who have approached Landlord Assist regarding squatters has increased by over 30% compared to 12 months ago.

Stephen Parry of Landlord Assist said: “There has been a marked increase in the number of people being repossessed and then re-entering their former properties as squatters. It is clearly a sign of the current financial plight of many homeowners in the UK. People simply have nowhere to go.

“We continually sympathise with the plight of so many who through no fault of their own find themselves in this situation and accordingly carry out our work in a very sensitive manner.”

Increasingly squatters are aware of their legal rights and therefore property owners should ensure that they do not fall foul of the law in dealing with them.

The presence of squatters can cause immense distress and worry for landlords. For that reason property owners should engage a professional company who can make an appropriate application to court and to have the necessary documentation served on the squatter.

The Council of Mortgage Lenders (CML) said home repossessions soared from 8,200 in 2004 to about 45,000 last year and could reach 75,000 this year, creating new homeless people and new empty houses. But with fewer contractors likely to make a profit by buying and restoring vacant properties, they are likely to stay empty for longer and become the potential target for squatters.