Residents of Devon and Cornwall have been left particularly exposed in the housing downturn, due to the influx of second home buyers previously pushing prices up.
Increasing numbers of homeowners in the south west of England are facing repossession, the Guardian reports.
The general downturn in the housing sector has had particularly severe effects in Cornwall and Devon, with 41 percent more residents facing claims to give up their home than in 2007. Across the UK, repossessions numbers have gone up 17 percent.
High house prices and low wages in the area have been blamed on the trend. This disparity has been driven by the fact that large numbers of wealthy city-dwellers retain holiday homes in the area. This means that they can often easily outbid local buyers for property, driving prices up out of the reach of most.
For example, in picturesque North Cornwall, the average wage stands at £23,000, but the average house price in the area is 23 times larger.
Speaking to the newspaper Stephen Davis, manager of Torridge and Bude Citizens Advice Bureau, said: "The problem is simple. In the south-west we have lower than average wages and above-average house prices.
"People have overreached themselves."
According to lender Nationwide's most recent house price survey, the value of the average UK property has declined by over 12 percent over the past year.
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