The number of homeowners in England and Wales threatened with having their property repossessed has risen by almost a quarter, official figures show.

The Ministry of Justice said lenders made 28,658 possession orders against borrowers in the second quarter of 2008 – 24% more than in the same period the previous year.

The numbers had increased by 4% on the previous quarter, suggesting more homeowners struggling with their debts as rising living costs had squeezed their finances.

Also, the number of possession claims – the step before the case is heard in court – reached 39,078, up 17% on the same period last year.

The number of repossession claims reached the highest in 15 years last year – 137,591 – and the signs are that it will be even higher in 2008.

Earlier this month the Council of Mortgage Lenders published figures showing the number of properties that had been taken into possession in the first half of the year.

Its figures showed 18,900 homes in the UK had been repossessed during the first six months this year, the highest for 12 years.

Housing minister, Caroline Flint, says: “As well as expanding free legal representation in county courts for households at risk of repossession, we are providing more free debt advice, and are working closely with lenders to ensure that repossession is only ever a last resort.

“These services can make a real difference, with more than 80% of repossessions avoided when they are used.”

Chiltern’s Nathan Gladwell says: “These figures obviously show that homeowners are finding the cost of living difficult, as their finances are being stretched to the limit.

“Often people aren’t aware their debts need prioritising, to make sure they keep the roof over their heads. A simple call to a free, impartial adviser, like Chiltern, can help people avoid losing their homes, as finances are rescheduled to ensure the most important debts can be paid.”