According to the Finance and Leasing Association (FLA), second-charge repossessions rose by 11.3% in Q4 2011 compared with the same period last year, with second-charge mortgage providers taking 178 properties into possession.

However, lower levels of repossessions earlier in the year meant that the total for the year as a whole was down on 2010, the FLA said.

It added that it expects the number of repossessions in 2012 to be slightly higher than the figures for 2011.

“Repossession levels have fallen for the third consecutive year as lenders continue with forbearance measures aimed at helping customers in financial difficulty to remain in their homes. These measures have been shown to work, as total repossessions are 48.7% down in 2011 on the total in 2008,” said Fiona Hoyle, head of consumer Finance at the FLA.

“Repossession remains the last resort if all other measures have failed. However, economic uncertainty persists and we may see this reflected in a slight rise in the number of repossessions in 2012.”