The rise was the biggest since the second half of 1991, at the end of the last recession.

The figures came as one of the Bank of England’s “hawks” raised concerns that the weak housing market might be hurting consumer confidence, adding to expectations that the Bank will cut interest rates next week.

Repossessions have fallen almost continuously since 1991, when 75,540 properties were taken back into possession, to last year, when that figure had fallen to 6,230, an historic low.

But yesterday’s figures, from the Council of Mortgage Lenders, showed that repossessions rose to 4,640 in the first half of this year, up from 3,070 in the second half of 2004, while the number of households in arrears with their mortgages also rose.

Analysts said that the figures should be treated with caution as the increase was from very low levels, and did not indicate the future direction of house prices.

Separate data, from the British Bankers’ Association, seemed to confirm that the housing market had taken a turn for the better. The number of new mortgage approvals rose to 70,750 in June, up from 67,702 in May and the highest level for a year.

An increase in net mortgage lending, to £4.6 billion in June from £4.5 billion the previous month, added to the picture of subdued but strengthening borrowing by consumers.

But economists and housing professionals gave warning that the increase in numbers losing their homes was probably the start of a new upward trend, as the effects of higher interest rates are felt throughout the economy.

The gloomy picture was supported by separate figures from the Department for Constitutional Affairs, showing an increase in court orders for repossessions.

Over the past three months 28,476 mortgage possession actions have been initiated, an increase of 52 per cent from the same period a year ago to the highest level since 2001. Most orders for repossession are not enforced, but the figures seemed to confirm that the numbers of people losing their homes will continue to rise in the months ahead.

Ed Stansfield, of Capital Economics, said: “For a small but growing minority of borrowers levels of debt have become a problem, despite historically low interest rates.”

Yesterday Sir Andrew Large, a member of the Bank’s Monetary Policy Committee (MPC) who voted for higher interest rates as recently as May, said that house prices and worries over pensions could be hurting consumer spending, although it was hard to say how long the slowdown on the high street would last.

Alan Clarke, of BNP Paribas, said: “It is significant to see one of the members who voted for no change in rates at the July MPC coming out with dovish comments.”

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