Newham is the fifth biggest hotspot for property repossessions in the UK, a report reveals.

The borough has the second highest rate of possession orders in London after Barking and Dagenham, with 400 people put at risk of losing their homes last year.

A possession order is an advanced stage of the repossession process when authorities can seize a property after failed payments.

Estate agent Dhiren Mistry, of Albany Residential, High Street, Plaistow, said: “We have found that a lot of tenants are becoming unemployed and some tenants are unable to pay their rent.

“When the landlord wants to evict them, they have to go to the council and get a court order and this order can take from six months to a year to get them evicted.

“Landlords are stuck with the payments on the house and that’s where I think a lot of the repossessions are coming from.”

Housing charity Shelter conducted the report and chief executive Campbell Robb said: “This research paints a frightening picture of repossession hotspots across the country where homeowners are literally on the brink of losing the roof over their head.”

The reasearch highlights the link between unemployment levels and rates of possession.

Unemployment in Newham rose by almost nine per cent since October.

The Office for National Statistics show the number of Jobseeker’s Allowance claimants rose from 10,343 in October to 11,364 in May.