The number of people forced to sell their homes at a loss went up by one third in the first nine months of this year, according to new figures from the mortgage guarantee foundation NHG.

In total, 3,427 home owners had to sell their property at a loss between January and the end of September, the latest NHG quarterly report says.

The NHG guarantee currently covers premises valued at up to €320,000. The guarantee means if people default on an NHG mortgage, a special home ownership fund will pay off the debt.

The increase was largely due to rising unemployment and divorce, the NHG said.