The number of repossessed homes fell for the second consecutive quarter in Q3 2012 representing the lowest number of properties taken into possession in a single quarter since 2007, according to the Council of Mortgage Lenders (CML).

The total of 8200 taken into possession in Q3, was 300 down from the 8,500 figure reached in the second quarter which was 9,600 at the same time last year.

Paul Smee, director general of the CML, said: “Our figures show that good communication and effective arrears management by borrowers, lenders and money advisers are helping the vast majority of those with mortgage repayment problems. The rate of repossession has continued to fall and it’s clear that lenders want to keep people in their homes.

“Repossession really is a last resort but it’s essential for anyone worried about their mortgage to talk to their lender as soon as possible – it is more difficult to resolve problems when they are not tackled early.”

The number of mortgages in arrears remained stable in Q3 although the number of mortgages with arrears of 2.5% or more of the outstanding balance rose slightly to 159,100, up from 158,700 in the previous quarter but still down on the 165,300 in arrears in the same period last year.

A total of 26,300 properties were taken into possession in the first three quarters of 2012, some 8% fewer than in the first three quarters of last year. While the repossession rate equated to 0.13% in the buy-to-let sector, the rate was just 0.06% in the owner-occupier sector – resulting in an overall repossession rate of 0.07% in the quarter.