House repossessions have fallen in the last three months according to the CML.

Latest figures released by the Council of Mortgage Lenders (CML) show that the number of homes being repossessed in the UK has fallen by 10% in the second quarter of the year.

The report published today (14 August) also states that the number of arrears has begun to level.

Despite the 10% drop this quarter in comparison with the previous three months, the 11,400 homes repossessed is a 14% increase on last year.

According to the CML, a combination of factors has managed to keep arrears and possessions down, including leniency demonstrated by lenders and low interest rates.

The CML warns not to get too optimistic about the future as a result of the latest figures. Jackie Bennett, CML’s Head of Policy, said: “With unemployment rising and the economy still weak, the outlook will remain challenging for the rest of this year and into 2010.

“But today’s data shows that lenders are committed to helping borrowers manage their way through temporary payment problems and get their mortgage back on track over time, avoiding possession where possible.”