Home repossessions in the UK fell by 9% during the second quarter of the year, according to the Financial Services Authority.
The number of properties repossessed in the three months to June dropped by 1,300 from the previous quarter to 13,610. However, the figure was still 23% higher that the same period in 2008.
The quarterly decline could have resulted from a "pre-action protocol" introduced in November last year, the FSA said. Under this protocol, courts can only grant a repossession order if all other measures to keep someone in their home have failed.
Borrowers are also benefiting from low interest rates, greater forbearance on the part of lenders, and a raft of Government initiatives to help those struggling with repayments.
The FSA said its figures indicated that the sharply rising trend in repossessions during the first nine months of last year had stabilised during the last three quarters.
The regulator also reported a fall in the number of people falling behind with their mortgage payments, with 51,000 homeowners getting into arrears of 1.5% or more of their outstanding mortgage during the second quarter, 14% fewer than in the previous three months.
But borrowers who do get into arrears are struggling to clear their debt, with a total 403,000 people owing arrears to their lender, 30% more than a year ago and a figure that has been steadily rising since early 2007.
The number of repossessed properties that lenders were able to sell more than doubled during the three months, compared with the same period of 2008, rising to 15,804, up from 6,987, most likely on the back of the improving housing market.
The figures are broadly in line with numbers published by the Council of Mortgage Lenders for the same period, which showed a 10% fall in repossessions to 11,400, although it reported a modest increase in the number of people who were in arrears.
The difference in the figures is due to the fact that the FSA data includes all lenders, including those offering second charge mortgages, while the CML only publishes figures on first charge loans advanced by its members.
Copyright © Press Association 2009