Home repossessions rise by 3%

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The number of people who lost their homes rose by only 3 per cent during the third quarter of the year despite rising unemployment, figures showed today.

Around 11,700 people had their homes repossessed during the three months to the end of September, up from 11,400 in the second quarter, but down on 12,700 during the first three months of the year, the Council of Mortgage Lenders said.

The group said it was slashing its forecast for repossessions during 2009 to 48,000, due to a combination of increased lender forbearance, Government schemes to help people stay in their homes and the impact of low interest rates.

It had originally predicted 75,000 people would lose their homes this year, although it revised the figure down to 65,000 in June.