According to a report by accountants PKF, the number of Scottish homeowners being declared insolvent has increased substantially since 2008, heraldscotland.com reports.

Figures show that in 2008, just 33% of people entering a Protected Trust Deed (essentially the Scottish equivalent of an IVA) were homeowners. In 2009, this figure increased to 47%.

The rapid increase in insolvencies is being blamed on ‘the well-off no longer being able to use rising equity in their homes to finance their lifestyles and pay off debts, given the slump in the property market and the reluctance of banks to issue credit’.

Corporate recovery partner for PKF, Bryan Jackson, said: “The figures are deeply concerning, given they seem to indicate that debt ¬levels in Scotland are ¬increasing and hitting homeowners the hardest.”