The number of homeowners struggling to meet their mortgage repayments has risen for the fourth year running as house prices continue to grow, figures revealed today.

Reports of higher levels of household debt from the Bank of England came as the Government reported that house price inflation is continuing to strengthen. The annual rate of house price inflation went up in October, from 8 per cent to 8.6 per cent, according to the Department for Communities and Local Government.

There was a slight dip in the average house price in October, down from £198,552 in September to £197,987, but analyst said this was seasonal.

Meanwhile, the Bank of England's quarterly bulletin said that borrowers, especially those on low incomes with high levels of debt, are falling behind. Rising utility bills, unemployment and unexpected shocks such as divorce were also blamed for sending 7.7 percent of mortgage borrowers over the edge.

The figures will prompt fears that households are becomingly increasingly over-stretched as interest rate rises and higher utility bills begin to bite.

The number of repossessions almost doubled last year, from 4,620 in the first half of 2005 to 8,140 over the first six months of this year, according to the Council of Mortgage Lenders.

The Bank of England also expects that the number of bankruptcies could rise, as attitudes towards bankruptcy begin to relax.

The bank said that the percentage of people who know someone who has declared bankruptcy has risen from 21 per cent to 24 per cent and that people who know a bankrupt person are more likely to consider it themselves. But only 3 per cent of households reporting debt problems admitted to considering bankruptcy or an individual voluntary arrangement.

The report found that debtors in rented accommodation are more likely to have difficulty repaying unsecured debts on personal loans and credit cards than homeowners with mortgages.