Repossessions at two-year low

The number of people who lost their homes fell to a two-year low during the first quarter of the year, official figures showed yesterday.

A total of 10,500 homeowners had properties repossessed during the three months to the end of March – 11 per cent fewer than during the previous quarter, according to the Financial Services Authority. There was also a drop in the number of people who fell behind with their mortgage payments during the period.

About 40,500 people got into arrears during the quarter – 2 per cent fewer than during the previous three months. The fall contributed to a further improvement in the number of people in mortgage arrears for the third consecutive quarter, with 362,000 behind on their loan – equivalent to 3.23 per cent of all mortgage holders.