Taylor Vinters - Solicitors

The Council of Mortgage Lenders' (CML) revision of its repossession forecast is encouraging, according to the Money Advice Trust.

However, spokesperson for the charity Beccy Boden Wilks also warned that this does not mean people are not still struggling with debt and mortgage arrears.

The CML revised its prediction for the number of repossessions it expects to occur in 2009 from 75,000 to 65,000.

It follows recent research by Shelter, which found that 160,000 families are struggling with mortgage repayments.

Ms Wilks said: "It may be that people are feeling the effects of them so that the repossession figures aren't going to be as stark as people first thought.

"Repossession really should be the absolute last resort because it really is a no-win situation."

She added that often lenders lose out because repossessed properties may not sell for as high a value as they would have done because they need to be auctioned.

Figures from the CML also indicate that net lending in the UK will contract by £5 billion.

Clare Martin, Taylor Vinters residential property specialist comments: "Repossession is not a positive result for either the lender or the borrower and recent trends seem to suggest that the High St lenders are working with borrowers to avoid this.

"Although in some instances repossession will be inevitable we find that lenders are going to unusual lengths in exploring all avenues to assist borrowers as far as practical for both parties. As legal costs are high and house prices achieved usually are lower for repossessed properties on the market it is in all parties interests to work together to keep families in their homes rather than to pursue the repossession route."