As many as one in 35 homes in some areas of England are at risk of being repossessed, according to the homelessness charity Shelter – the equivalent of one house on every street.

Unemployment and the high cost of living are leaving many households on a knife edge, and changes to benefit rules could lead to more people losing their homes, Shelter said.

The number of possession claims across England has increased, according to figures released by the charity which it says are based on a combination of Ministry of Justice statistics and 2011 census data.

The figures relate to possession claims, which are applications made to a court by lenders and landlords to repossess a house, the first step to get a possession order.

Between July 2012 and June 2013 the biggest increase in possession and eviction claims was recorded in Richmondshire, North Yorkshire, rocketing by 80.3%.

West Somerset follows Richmondshire with 65.7% more possession claims, while Watford has a 50.8% increase.

Newham in east London has the largest number of homes at risk of being repossessed, at one in every 35.

Following Newham are Haringey in north London and Barking and Dagenham in east London, each with one in 37 homes at risk.

Outside London, Wolverhampton has the highest claim rate for possessions at one in 59 homes under threat, followed by Nottingham, Salford, Peterborough and Luton, which all have one in 63 homes at risk.

In the London borough of Brent, 2,747 homes are at risk as of June this year, up 37.6% from 1,997 a year earlier.

The survey is part of Shelter's campaign against the removal of a short-term financial safety net for people who lose their jobs.

Under the universal credit system, which began its national roll out this month, the level of housing benefit newly unemployed people can claim for the first 13 weeks will be reduced. The changes mean that in a quarter of Britain a family paying a typical rent on a three-bedroom home would need to find an extra £100 a month or more as soon as they became unemployed, or risk getting into arrears and losing their home.

Campbell Robb, the chief executive of Shelter, said: "This research shows that thousands of families all over England are dealing with the devastating possibility of losing their home. In some places as many as one home in every street is now at risk.

"It's right we create a welfare system that's fair but government changes to the safety net are leaving ordinary families exposed."

• This article was amended on 17 October 2013. An earlier version said the right for newly unemployed people to claim housing benefit for the first 13 weeks had been removed. The level of help newly unemployed people can apply for will be reduced, but housing benefit will not be cut completely.