So now it’s official. 27,000 homes were repossessed in 2007, the highest figure since 1999, with the sub prime market responsible for half of current repossession orders, despite this sector accounting for only 6 per cent of outstanding mortgages, according to a BBC report.

For those of us who have had their concerns about the goings-on in the sub prime market, this hardly comes as a surprise. But the difference between now and previous house price recessions is that, this time, the chances of sub prime borrowers being able to re-mortgage to a better rate is virtually nil, thanks to the credit crunch.

It is hard enough for prime borrowers to get the sort of mortgage they want, let alone individuals with a poor credit history. While not all repossession orders end in the occupants losing their home, the omens are not good.

A report by the Citizens Advice Bureau claims that sub prime lenders are less willing than mainstream mortgage lenders to negotiate with borrowers in arrears. The report also says that the level of repossession actions in the county courts is now running at a rate last seen in the housing downturn of the early 1990s.

Furthermore, with inflationary pressures building in the economy, there’s no certainty that the Bank of England will cut rates as quickly as the market expects and even when there are reductions, mortgage lenders aren’t always quick to pass them on in full to their borrowers.

So stand by for more depressing reading in the months to come, as the outlook for the housing market turns distinctly gloomy. The latest RICS survey shows that 56 per cent of respondents reported house price falls, compared to just 2 per cent reporting house prices rises, as well as a a decline in the number of enquiries from new buyers.

With first time buyers priced out of the market and buy-to-let purchasers having to pay more for lower loan-to-value mortgages than previously, one has to ask who is going to pick up the slack?