Repossessions leapt by more than 20% during 2007 to hit an eight-year high but remained considerably lower than mortgage lenders' expectations.

The number of people who had their properties seized rose to 27,100 during the year - an average of 74 every day - but the real extent of the crunch hitting household finances is being masked by sale-and-rent back firms.

Industry experts believe the number of repossessions is being kept artificially low by the rapid growth in the number of companies purchasing troubled homeowners' properties at bargain prices before renting them back to the householders.