LONDON (Reuters) - Property repossessions are expected to jump almost a quarter this year, as the fall-out from the credit crunch takes hold, a leading economic consultancy said yesterday.

The number of mortgaged properties that will be repossessed in 2008 is set to rise to 33,400 — up more than 23 percent on last year and a heady 300 percent increase on 2004.

The prediction, from the Centre for Economics and Business Research (CEBR), comes as borrowers increasingly feel the pinch from higher mortgage costs and a tightening of lending criteria.

At the same time, Britons have record personal unsecured debts and the cost of living is rising, stoked by soaring fuel and food prices.

CEBR said that until the problems in wholesale money markets are rectified, mortgage finance will be severely constrained and, even where available, rates offered to consumers will fail to reflect recent cuts in the base rate.