Thousands losing their homes as a result of recession

HOMES were repossessed at the rate of 110 a day last year – but experts warn the figure could double this year as the recession puts hundreds of thousands of homeowners at risk of defaulting on their mortgages.

Figures released yesterday by the Council of Mortgage Lenders (CML) revealed that 40,000 homes across the UK were seized in 2008, a 12-year high, and up 54 per cent on the previous year's 25,900.

The CML predicted the total would jump this year to 75,000 properties.

However, one expert accused the group of being "too conservative" and said repossessions were likely to peak at 82,000 homes, or 225 a day.

Nick Hopkinson, of residential property acquisition group Property Portfolio Rescue, added: "With no end to the recession in sight and unemployment set to hit three million by the end of the year, there is no doubt that we are going to see another sharp rise in repossessions in 2009."

The CML does not provide separate repossession figures for Scotland, but housing charity Shelter Scotland estimated they could reach 7,000 by the end of 2009. By the end of 2008, 182,600 of the UK's 11.7 million mortgages were in arrears of more than three months.

The figures came as the government was accused of "giving false hope" to people at risk after it emerged that a rescue scheme announced in December will not come into effect until April.

But Prime Minister Gordon Brown vowed to "do everything we can to stop repossessions". He said: "We're determined that this will not become as high a feature as it has been in previous downturns in the country."