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The number of repossessions across Britain this year looks set to be almost a quarter higher than was the case in 2007, it has been revealed.

According to data from the Centre for Economics and Business Research (Cebr), this year will see more than 33,000 people lose their homes as a result of serious debt management and money problems.

It is thought by some that the problems within the housing sector are being made worse by reluctance among lenders to offer deals their customers can afford.

"Unless or until this tap of mortgage finance starts to flow again, the outcome will be a reduction in house prices and an increase in repossessions," said Cebr’s managing economist John Ward.

However, Cebr has also noted that the scale of repossession activity this year will not reach the highs witnessed in the UK during the early 1990’s.

Last week, the debt counselling group Christians Against Poverty warned that millions of British families are being pushed to breaking point by their worsening money problems.

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