The number of people in the UK who had their homes repossessed fell to a two-and-a-half-year low during the third quarter, figures showed yesterday.

Around 8,900 properties were taken back by lenders during the three months to the end of September, five per cent fewer than during the previous quarter and 27 per cent down on the same period of 2009, the Council of Mortgage Lenders said.

It was the fourth consecutive quarter during which repossessions fell, with the number of people who lost their home dropping to its lowest level since the first three months of 2008.

The group said 28,400 properties had been repossessed during the first nine months of the year, suggesting the total number for 2010 would be below the CML’s revised forecast of 39,000, which was itself well down on its original estimate of 53,000.

It credited the lower than expected repossession levels to a combination of record low interest rates, increased lender forbearance and the support available from the government and debt advice groups.

But it warned that with the economic outlook remaining uncertain, and a recent cut in the rate at which Support for Mortgage Interest is paid to homeowners on certain benefits, it was important that support for borrowers who ran into difficulties was maintained during 2011 and beyond.

There was also a slight improvement in the number of people who had fallen behind with their mortgage during the third quarter, with 176,100 people in arrears of 2.5 per cent or more of their outstanding debt, down from 178,200 at the end of June.

The CML said the figures were in line with its forecast for 175,000 people to end 2010 in mortgage arrears of this level, although this was also down on its original prediction of 205,000 cases.