Recent data has indicated that fewer people in the UK had their homes repossessed during the last three months of last year, and this was also mirrored by a definite fall in the number of court orders issued for the seizure of properties.

According to the Council of Mortgage Lenders, lenders repossessed more than 10,000 homes during the three month period leading up to December, a figure that is 13% lower than the previous quarter, and also 2% down on the same period in 2009. During the period of October to December 2009 there were almost 17,000 home repossession orders in the UK, and this figure is 15% down on the previous three month figure to September 2009. Independent figures issued by the Ministry of Justice showed that 42% fewer mortgage possession orders were issued by English and Welsh courts during the last quarter of 2009 as compared to the same period for the previous year.

With the current signs of greater stability within the labour market, as well as the general consensus that interest rates will stay long for a continuing period, the Council of Mortgage Lenders has cautioned that its previous estimate of 53,000 repossessions throughout the coming year now appear somewhat overdone. The Council warned, however, that we continue to face a rather uncertain period. They caution that, although the lower levels of repossessions are a tribute to continued low interest rates as well as efforts from the government, lenders and the advice sector, borrowers are likely to come under pressure as and when interest rates are eventually raised.

The job market has also been one of the key factors in keeping the number of repossessions lower than expected, with unemployment rising much lower than had been expected and much lower than was seen in the previous recession. Overall confidence in the housing market has also improved with a 5% rise in the number of construction orders during the three months leading up to December 2009 up by 5% on the previous year. New buy-to-let lending also rose for the second quarter in a row, further stimulating market confidence. Many home owners being able to take advantage of some of the best mortgage rates in years as well as find quality re-mortgages have also helped contribute to this trend.