The number of homes repossessed has soared by 71%, new figures revealed yesterday.

The number of homes repossessed has soared by 71%, new figures revealed yesterday.

The Financial Services Authority said 11,054 homes were repossessed in the UK in the three months to the end of June, compared with just 6476 during the same period last year.

The FSA said the number had been growing "significantly" since the third quarter of last year, as increasing numbers of homeowners struggle with arrears.

Meanwhile, in a further blow to first-time buyers, the number of mortgage deals available for people with only a 5% deposit has fallen by almost half in the past week. There are now just 40 home loans available for people borrowing up to 95% of their home's value, down from 75 just a week ago - a 47% fall. In July, 2007, there were more than 1000 such deals on the market.

A spokeswoman for the Scottish Government said a number of measures, such as a new £25m Home Owners Support Fund and a shared equity scheme due to be introduced next year, would help Scots struggling with mortgage arrears.

She added: "These figures illustrate the difficulties being experienced by homeowners. The Mortgage Rights (Scotland) Act 2001 provides significant protection for those at risk of repossession, but we are considering whether any additional measures are needed to deliver enhanced protection for homeowners in Scotland."

John Mason, SNP MP for Glasgow East, said he was "very concerned" at the latest rise in repossessions, and urged the UK Government to make sure banks, particularly those recently bailed out by the government, did more to help homeowners experiencing difficulties.

He said: "Over the last few years many people have pushed the boat out in order to afford a house. It would be extremely ironic if the newly- nationalised banks were to smash the little people over the head by repossessing their homes.

"When people lose their homes they have to be re-housed, which causes wider problems for society, particularly as we have a shortage of decent affordable rented accommodation in Scotland."

Tory MSP Bill Aitken said it was "no surprise" that the number of repossessions was up.

He added: "Unfortunately, more and more people are paying the price for the glut of too-easy credit available over the last 10 years, many after acting ill-advisedly.

"The Scottish Parliament has already introduced legislation offering greater protection to those at risk of having their homes repossessed, but it's difficult to see how much further we can go."

However, Bill Cullen, chief executive of Glasgow-based estate agents Clyde, said the figures should be kept in context. He believes Scotland will not bare the brunt of the increase.

He said: "Although 71% sounds very high, it is important to point out that for the previous 10 years, as house prices soared, there have been very few repossessions.

"The percentage of homes being repossessed is still very tiny in comparison to the total number of homeowners in the UK."

Around 15 million Britons currently own their home. Mr Cullen added: "My company has not sold a repossessed house in five years. I would imagine the majority of these repossessions will be taking place in England where the average loan to value figure is much higher.

"Scots, in general, are more thrifty and conservative, and spend proportionally less of their income on mortgages. Those most at risk took out mortgages of 100% or more in the last couple of years, or big loans when prices were at their peak - this was clearly unsustainable. People accept that prices have fallen by 15 to 20%, but in the vast majority of cases their homes are not at risk."

There has also been a steep drop in the number of 90% deals on the market, falling to 261 now from 324 last week, according to financial information group Moneyfacts.co.uk.

Average mortgage rates also remain high, despite the recent reduction in the Bank of England base rate. So far only 43 out of 96 lenders with a standard variable rate have announced whether or not they plan to pass on the cut to customers.