According to the latest figures from lenders, the number of repossessed homes in the UK dropped by 7.5% during the first quarter of this year. The figures have shown that the total number of repossessed homes in the UK fell from 10,600 during the final quarter of 2009 to a figure of 9,800 in the opening quarter of this year. This figure was lower than the figure of 13,200 recorded at the same point last year, according to the CML.

The Council added that many homeowners are still vulnerable to the threat of falling into mortgage arrears, and has said that it might revise its overall forecast of 53,000 total repossessions during this year – and has described this figure as ‘pessimistic’ assuming that there are no more economic ructions.

The number of repossessed homes stood at its lowest level for two years, falling 7.5% on the previous quarter and an overall 26% lower than during the opening three months of last year.

The Council stated that the principal factor behind the falling repossession figures is the low interest  that has allowed people, even those made redundant, to avoid the threat of losing their homes as a result of low monthly mortgage bills thanks to the consistently low interest rate.

The latest figures also show that the percentage of mortgage holders experiencing difficulties in paying their mortgages also dropped during the first quarter of 2010.

The overall number of home loans standing in arrears has also dropped, although the director general of the Council of Mortgage Lenders, Michael Coogan, has insisted that the figures give no cause to relax at this stage.

Through England’s Mortgage Rescue Scheme homeowners are able to sell their properties to local authorities or housing associations and subsequently stay living in it by paying monthly rental fees, or to sell a part of the property in what is called a shared equity deal that results in lower mortgage payments. According to the CML, such government help for homeowners had worked to curtail repossessions and figures are still far lower than during the slump in the housing market during the early 1990s.