The number of repossessed UK homes fell 17 per cent year-on-year in the first quarter of 2013, according to the latest figures from the Council of Mortgage Lenders.
In the three months ending 31 March, there were 8,000 repossessions, compared with 9,600 in the first quarter of 2012.
This means around 0.07 per cent of outstanding loans were repossessed in the first quarter, representing fewer than 1 in 1,400 mortgage properties taken into possession.
The CML is forecasting a total of 35,000 repossessions in 2013, with 160,000 mortgages in arrears of 2.5 per cent of more.
Approximately 20 per cent of those homes repossessed in the first quarter, equivalent to 1,600 properties, were buy-to-let properties.
BTL lending remains strong however, as evidenced by CML figures which show gross BTL lending rose 14 per cent year-on-year over the same period.
Around £4.2bn was advanced in the first quarter, compared with £3.7bn in the first quarter of 2012. BTL lending is estimated to account for 13.4 per cent of the £33.8bn in gross mortgage lending recorded for the first quarter.
All Types of Mortgages managing director Dale Jannels says: “BTL is an incredible competitive market at the moment. Even with rates where they currently are, there are still many people who are not in a position to take that first step onto the property ladder. For as long as this is the case, the rental market will remain strong and BTL growth figures look sustainable.”