The number of court actions for home repossession in the third quarter of this year has risen sharply.

Figures from the Department for Constitutional Affairs showed that just under 30,000 repossession applications were made in the courts by lenders in the three months to the end of September.

This is a 55% increase on the same period in 2004 and some quarters have expressed concern that the figures highlight a growing problem consumers are facing in meeting monthly repayments.

However, the Council of Mortgage Lenders was at pains to point out that only a fraction of borrowers facing court actions for defaulting on their payments ultimately have their homes repossessed.

It said out of 32,366 orders made in the first half of the year, only 4,640 homes were actually repossessed. The CML added that although lenders go to the courts, they are usually trying to commit the borrower to disciplined payments rather than take their home.

Lenders have blamed rising repossessions on five interest rate rises in 2003 and 2004. The Bank of England trimmed rates to 4.5% in August, offering some respite to borrowers.