The Council of Mortgage Lenders has revealed 8,200 properties were taken into possession during the last quarter.
This represents a fall from 8,500 in the previous quarter and 9,600 for the same period last year and the lowest figure for a single quarter since 2007.
Commenting on the data, CML director general Paul Smee said: “Our figures show that good communication and effective arrears management by borrowers, lenders and money advisers are helping the vast majority of those with mortgage repayment problems.
"The rate of repossession has continued to fall and it’s clear that lenders want to keep people in their homes."
Mark Blackwell, managing director of xit2, said the lower rates of repossession were good news and showed that lenders were striving to be flexible.
Richard Sexton, director of e.surv chartered surveyors, was also quick to praise lenders. However he said: “The issue is whether this is a sustainable approach in the long-term. This is the fourth quarter in a row where arrears of 10% or more have increased, yet repossessions have remained broadly flat.
“Banks won’t be able to go on absorbing long-term arrears into their balance sheets infinitely, and they also have a duty of care to ensure borrowers don’t build up ‘too much’ debt by allowing them to stay in a property if this is unsustainable.”
