The number of properties being repossessed by lenders in the UK rose by 12% to 11,300 in the third quarter of 2008, figures from the Council of Mortgage Lenders revealed.

The amount of borrowers in arrears with mortgage payments increased by 8%, to 168,000, while repossession orders by the courts rose 3% to 29,516.

"Conditions in the wider economy suggest a worsening picture for mortgage arrears, however carefully lenders handle their treatment of borrowers in difficulty," said CML director general Michael Coogan.

He added that the body's earlier prediction that there would be 45,000 repossessions this year was still the case.

The National Association of Estate Agents revealed that 5,000 properties are being put up for sale each week by those struggling to meet repayments.