Home repossessions rose to 40,000 in 2008.

According to new statistics published by the Council of Mortgage Lenders (CML), the number of UK homes repossessed in 2008 rose by 54% to 40,000.

Despite the economic crisis, this figure is lower than the 45,000 repossessions the CML had predicted. However, 219,000 mortgages were in arrears of more than three months at the end of 2008, up from 127,500 at the same time a year earlier.

The reason for fewer repossessions than expected is due to mortgage lenders making “strenuous efforts to ensure that repossession really is a last resort”, according to the CML.

Michael Coogan, Director General of CML, commented: “Despite the upward pressure on mortgage arrears and repossessions arising from the problems in the economy and rising unemployment, both lenders and government are continuing to find more ways to help people stay in their homes.”

However, the CML still expects the number of home repossessions in 2009 to reach 75,000.

The CML study published today (20 February) also pointed out a rising trend in abandoning properties or handing back keys, which it is trying to discourage.

Mr Coogan said: “There seems to be a sharp rise in cases where borrowers are handing back their keys or abandoning their properties. We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions.”