The number of homes repossessed in the UK last year dropped by 24% to 36,300, the Council of Mortgage Lenders (CML) has said.

The number of homes repossessed in the UK last year dropped by 24% to 36,300, the Council of Mortgage Lenders (CML) has said.

The number of people in arrears by 2.5% or more of their outstanding loans also fell last year, by 13% to 169,600.

The continued low level of interest rates has helped many home owners in financial difficulties.

However, the CML repeated its warning that arrears and repossessions may rise this year.

"As we go through 2011, the number of people facing payment pressures may increase if interest rates rise, and as a result of the spending cuts that have resulted in reductions in the level of public support available," said the CML's director general Michael Coogan.

"We will be monitoring developments closely, but at present we continue to expect the number of arrears and repossessions to be in line with our forecasts of 40,000 repossessions and 180,000 arrears cases as at the end of 2011."

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