The number of homes repossessed in Britain last year dropped by 24% to 36,000.
The Council of Mortgage Lenders says the number of people in arrears of their outstanding loans by 2.5% or more also fell last year, by 13% to 169,600.
The continued low level of interest rates has helped many home owners in financial difficulties.
The council is again warning, however, that there may be more arrears and repossessions this year, as interest rates rise and public spending cuts take effect.
