Property repossessions in 2011 were at their lowest level since before the start of the credit crunch.

New figures released by the Council of Mortgage Lenders (CML) shows that the number of properties taken into possession last year stood at 36,200, the smallest annual number since 2007.
The number of people in arrears with their mortgage repayments has also improved modestly to 159,400 compared to 172,400 the previous year.

CML director general Paul Smee said: "Low interest rates and good arrears management by lenders are helping the vast majority of those borrowers who face difficulties to keep their homes and get back on track."

He added that any concerned about their finances should speak to their mortgage lender in the first instance while also seeking out advice for any other debts which may be causing them problems.

The reduction in repossessions suggests that the nation's financial welfare is improving and the National Association of Estate Agents (NAEA) has said recently that that this year will see the housing market gradually recover to transaction levels seen prior to the credit crunch.