The number of families who stand to lose their homes after failing to keep up with their mortgage payments has increased sharply this year. The number of property repossession orders issued by the county courts in England and Wales in the second quarter was 24% higher than in the second quarter of 2007 and 4% higher than in the first quarter of this year.

A total of 28,658 mortgage possession orders were made, on a seasonally adjusted basis. As many of the orders will not have been enforced, that was not the number of properties actually repossessed, but data published earlier by the Council of Mortgage Lenders showed that actual repossessions have also gone up - by 41% in the first half of the year, and they are expected to reach 45,000 in total this year.

Figures released today by the Ministry of Justice also show a sharp increase in the repossession claims made by lenders in the past year: the 39,078 mortgage possession claims filed in the first quarter were 17% more than in the second quarter of 2007. But there was no change compared with the first quarter of 2008.

There was a similar trend in the number of landlord possession orders issued in the second quarter: at 28,042 they were 8% on the same period of 2007, but 1% down on the first quarter of this year.

Possession claims lodged by landlords were 2% higher than in the first quarter of last year, but the same number as in the first quarter of 2008: 378,609.

The number of properties repossessed is generally much lower than the orders made: even where a warrant for possession is issued, the parties can still negotiate a compromise to prevent eviction, and the courts often grant the claimant possession but suspend the operation of the order. This means that, provided the defendant complies with the terms of suspension, which usually require the defendant to pay the current mortgage/rent instalments plus some of the accrued arrears, the possession order cannot be enforced.

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