LONDON, July 31 (Reuters) - More British companies are expected to file for administration in the coming months amid high debt levels and rising interest rates, accountancy firm Deloitte & Touche said on Tuesday.

Sectors such as food processing are particularly vulnerable as they have been squeezed by rising costs of raw materials and on their profit margins, Deloitte said in a report.

Highly indebted businesses in the property and construction industries may also suffer soon as interest rate rises put a squeeze on growth in property values.

"We will see an acceleration in the rate of companies going into administration as more marginal investments begin to buckle," Deloitte said.



"The banks are getting more nervous about lending money with interest rate rises beginning to bite. We have seen a marked increase in the rate of business reviews we are being asked to undertake."

Buoyant credit markets and ample liquidity has kept insolvency levels at historic lows in Europe in the United States over the past two years.

During the first six months of 2007, as many as 1,205 British companies filed for administration, down 15 percent from the same period last year, Deloitte said.

"We should not be misled by the current figures," the accountancy firm said. "At Deloitte we are seeing more work dealing with troubled companies, which were acquired from earlier failed enterprises and which are now beginning to fail again with increasing momentum."

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