The number of homes taken in to possession and the number of home owners in arrears on their mortgage payments fell in the second three months of the year.

Figures from the Financial Services Authority (FSA) show there were 13,610 new repossessions in the three months to the end of June, nine per cent lower than the 14,884 cases recorded for first three months of the year. 

The number of new arrears cases fell for a second quarter in a row, down by 14 per cent on the previous three months.  New arrears cases are now six per cent lower than the average of the last 18 months. 

The total number of home owners in arrears has been rising steadily but slowly.  They now represent, 3.66 per cent of the total value of mortgage loans, up fractionally on 3.64 per cent recorded in the first thee months of the year, but significantly higher that the 2.55 per cent seen a year earlier.

Commenting on the figures, RICS senior economist Brigid O'Leary said: "Today's figures suggest that lower mortgage rates have helped borrowers keep up with repayments while Government requirements for lenders to show greater forbearance is also having some effect.  In addition, it is encouraging to note that the total number of loans in arrears only rose by about 3,000 in Q2, suggesting that some borrowers are managing to move themselves out of arrears".