The repossession statistics released by the Ministry of Justice make alarming reading - until, that is, you consider the nature of these numbers.

In the first three months of this year, there were 27,530 repossession orders which is not the same thing as actual repossessions. These people are at risk of losing their homes through persistent failure to meet their mortgage repayments, but not all will do so: last year there were 95,000 repossession orders, but only 27,100 repossessions, although every repossession does represent the collapse of an individual's dream of homeownership.

Repossession does not also mean a get-out-of-jail-free card, an escape from mortgage debt: the former homeowner continues to be liable to the mortgage lender, who will continue to seek the recovery of its money.

In some cases, a repossession order can be a short, sharp shock that will encourage a borrower who is in denial about his arrears to start talking to his lender about ways in which the debt burden can be lessened or rescheduled. Banks and building societies are open to negotiations in such cases: after all, it is in their financial interest to keep customers in their homes.

The Ministry of Justice numbers include homebuyers who have already agreed an easier repayment programme with their lenders. These individuals and families will only be repossessed if they renege on their pledges.

Repossessions are set to rise this year, reflecting the hardship being caused to households by more expensive mortgages and the surging cost of living. Around 1.4 million borrowers will come to the end of superdiscounted fixed rate loans this year; they will not be able to move onto equally advantageous deals.

For the moment, the Council of Mortgage Lenders is still forecasting 45,000 borrowers will lose their homes. In 1991, at the height of the Nineties property slump, there were 75,540 repossessions, many of them voluntary: people handed in their keys, rather than continue the struggle of meeting mortgage repayments which had doubled.

Not before time, the Government is now pledging that there will be extra guidance from the Citizens Advice Bureaux and other services for those unable to cope with their mortgages and other debts: behind closed doors, ministers are cajoling lenders to be patient with those falling behind with their commitments.

In previous property market downturns, repossessed properties have been the way for first-time buyers to clamber onto the housing ladder.

So far, this is not proving to be the case. Repossessed properties are being snapped up - but by cash-laden wealthy investors. First-time buyers who are facing huge difficulties obtaining mortgages can only stand by in frustration.

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