Fewer UK house repossessions are taking place, along with house mortgages in arrears, according to the latest data from the Council of Mortgage Lenders. The latest data outlines the condition which exists in the third quarter of this year. Rates of arrears as well as repossessions are at their lowest levels since formal quarterly records began.

This speaks well to the stability of the UK housing market moving forward. Incomes continue to improve, inflation is being held at a fairly constant rate, and demand for housing is still quite high. These fundamentals are moving in a positive direction, but these factors are not the only reason for stability in arrears and repossessions. Lenders are proving themselves to be worthy of working with borrowers and not just seizing property at any opportunity.

Compared with the same quarter last year, a significant decline has taken place. Only 2,500 repossessions were executed, compared with twice that many from the year 2014.

Only 2.5% of the total number of mortgage loans were in arrears at the end of September. This is but a scant amount of the more than 104,600 loans outstanding. It represents a decrease of more than 13% from the same time in the year prior.

CML director general Paul Smee commented on the current data regarding arrears and repossessions, saying: “Supported by low interest rates and an improving jobs market, mortgage arrears continue to fall and repossessions are stable. Lenders are committed to working with borrowers to resolve their financial difficulties rather than take possession wherever this is realistic.”

Smee added: “Looking ahead, there is possibly a risk that people will postpone thinking about the prospect of higher payments as the timing of rate rises continues to stretch beyond previous expectations. But we would urge all borrowers to plan ahead, as prevention is better than cure.”