The rate of repossession in the UK looks likely to increase further as homeowners struggle to deal with their debt management problems, it has been claimed.
According to Stephen King, managing director of economics at HSBC, the coming months will see the range of mortgage deals on the market will fall and more people unable to meet their repayment demands.
Mr King is convinced that the rapid rise in house prices during the past ten years was down to "easy credit" but as lending practices tighten repossession appears to be a likely fate for thousands of families.
He went on to suggest that the government would be wrong to blame money problems in the US for the issues affecting the British economy.
"In truth, the shock facing the UK economy is remarkably similar to the shock facing the US economy because both countries chose, a few years ago, to do a deal with the debt devil," he wrote in the Independent.
Last week, Liberal Democrat treasury spokesperson Vince Cable warned that the UK could soon be facing an epidemic of repossessions.