Repossessions during the second quarter eased by ten per cent, according to figures out today.
The Council of Mortgage Lenders (CML) found the number of homes repossessed in the second quarter was down on the first quarter, although the number of cases was 14 per cent more than last year.
However, the CML warned the outlook for the housing market was still 'challenging'.
In the three months to June there were 11,400 cases of possession, ten per cent fewer than the first quarter of the year, but 14 per cent more than the same quarter the year before.
The CML also said there was a 'modest deterioration in arrears during the second quarter'.
The total number of possessions for the first half of 2009 now stands at 24,100. The CML's forecast for the whole year is 65,000.
The CML's head of policy Jackie Bennett 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.
'Clearly, low interest rates are also helping borrowers who are committed to working to resolve their arrears, paying what they can - and when they can - towards their mortgage, and maintaining good communication with their lender.
'The key message continues to be to talk to your lender as soon as possible when difficulties emerge and take advice from an independent money adviser if you have other debts as well as your mortgage.'
The CML also released figures on buy-to-let today, which 'showed the first signs of stabilising'.
Keshav Thukaram, managing director Smartlandlord.co.uk, said: 'These encouraging figures released by the CML today confirm what Smartlandlord.co.uk has said all along: the market has bottomed out and is starting to recover – albeit slowly. This should be a wake-up call for all buy to let lenders to start lending more aggressively.'
However, the CML warned the buy-to-let market was still vulnerable to employment, with unemployment this week reaching 2.44 million.
CML senior policy adviser Rob Thomas said: 'So long as properties have paying tenants, landlords now have much greater ability to service mortgage payments and we expect arrears to continue to fall as landlords are helped by lower interest rates. But healthy rental demand is contingent on a number of factors, including tenants’ continued employment.'
The Council of Mortgage Lenders (CML) found the number of homes repossessed in the second quarter was down on the first quarter, although the number of cases was 14 per cent more than last year.
However, the CML warned the outlook for the housing market was still 'challenging'.
In the three months to June there were 11,400 cases of possession, ten per cent fewer than the first quarter of the year, but 14 per cent more than the same quarter the year before.
The CML also said there was a 'modest deterioration in arrears during the second quarter'.
The total number of possessions for the first half of 2009 now stands at 24,100. The CML's forecast for the whole year is 65,000.
The CML's head of policy Jackie Bennett 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.
'Clearly, low interest rates are also helping borrowers who are committed to working to resolve their arrears, paying what they can - and when they can - towards their mortgage, and maintaining good communication with their lender.
'The key message continues to be to talk to your lender as soon as possible when difficulties emerge and take advice from an independent money adviser if you have other debts as well as your mortgage.'
The CML also released figures on buy-to-let today, which 'showed the first signs of stabilising'.
Keshav Thukaram, managing director Smartlandlord.co.uk, said: 'These encouraging figures released by the CML today confirm what Smartlandlord.co.uk has said all along: the market has bottomed out and is starting to recover – albeit slowly. This should be a wake-up call for all buy to let lenders to start lending more aggressively.'
However, the CML warned the buy-to-let market was still vulnerable to employment, with unemployment this week reaching 2.44 million.
CML senior policy adviser Rob Thomas said: 'So long as properties have paying tenants, landlords now have much greater ability to service mortgage payments and we expect arrears to continue to fall as landlords are helped by lower interest rates. But healthy rental demand is contingent on a number of factors, including tenants’ continued employment.'
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