Home repossessions rose by 21 per cent in 2007, figures released today show.

The Council of Mortgage Lenders said 27,100 homes were taken over by lenders - the most since 1999.

This represents a threefold rise since 2003, and with economic conditions worsening the CML expects the increase to continue this year.

“The number of repossessions is likely to be higher in 2008 as a result of wider issues in the economy and the mortgage funding markets,” said CML Director General Michael Coogan. “Anyone who thinks they might be heading into difficulty should contact their lender, as problems are easier to resolve if they are tackled at an early stage.

“Lenders want to avoid repossessions just as much as borrowers do.”

The news comes amid growing concerns about the UK property market.

It was revealed earlier this week that the average family’s mortgage burden is at its biggest since the housing crash of 1990.

Halifax also reported a 35 per cent drop in the number of mortgage applications being approved.