This rate is the equivalent of fewer than 1 in 1,400 mortgaged properties being taken into possession by lenders each quarter.
Arrears also remain stable. The number of mortgages in arrears has been similar across all categories for at least a year, and the underlying trend is unchanged. At the end of the first quarter some 159,800 mortgages had arrears equivalent to 2.5% or more of the mortgage balance. This number was equivalent to 1.4% of all mortgages - the same proportion both as last quarter, and as the same quarter last year.
Within the total number of mortgages in arrears, 82,600 mortgages had arrears equivalent to 2.5% or more but less than 5% of the mortgage balance, 32,000 5-7.5% of the balance, 14,900 7.5-10% of the balance, and 30,300 10% or more of the balance.
A total of 8,000 properties were taken into possession (down from 9,600 in the first quarter of 2012, but showing the the usual seasonal pattern of an upturn from the fourth quarter figure of 7,700). Around 20% of repossessions were on buy-to-let rather than owner-occupier properties.
The CML's last forecast for 2013 anticipated that there would be a total of 35,000 repossessions in 2013, with 160,000 mortgages in arrears of 2.5% or more at the end of the year. The CML has no imminent plans to revise this forecast.
CML director general Paul Smee commented:
"Mortgage arrears and repossessions have stabilised at levels lower than many anticipated when the economic downturn started. Low interest rates, continuing employment, lender forbearance and tactical public policy support have combined to ensure that repossession really is a last resort.
"Anyone who is worried about their mortgage can be assured that, as long as they take steps early to address them, most problems can be contained. Lenders very much want to enable people to stay in their homes wherever they have sustainable prospects of getting their mortgage back on track."
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"The number of borrowers in arrears or having their home repossessed has stabilised as low interest rates and forbearance from lenders combine to keep many on an even keel. However, there are still tens of thousands of borrowers in arrears and thousands of homeowners losing their homes, signifying that all is not well. When interest rates are at historic lows and people are still struggling, it does not bode well for when rates inevitably start their ascent. Thankfully, that does not look likely to happen anytime soon.
"There is no room for complacency, however. Lenders must continue to show forbearance and be as flexible as they can. But borrowers must also do their bit and take action at the first signs that they are going to have problems paying the mortgage. Talk to your lender or consult one of the free debt services before the problem gets out of hand and you lose the roof over your head."
Giles Hannah, managing director of London agency VanHan, adds:
"While robust demand from tenants continues to fuel growth in the sector, the government needs to take care. Proposals in the Queen's Speech that landlords be made responsible for ensuring tenants have a legal right to live in the UK before arranging a letting are likely to be difficult to enforce and add yet another layer of complexity and expense for landlords, with the latter ultimately being passed onto tenants - many of whom are already struggling to pay rising rents. The private rental sector already has many checks and balances in place, and undue interference will hamper an area that is set for considerable growth as many struggle to get on the housing ladder and are forced to rent for longer."
