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A new report indicating that the rate of repossession is down and set to fall further has been welcomed.

Data from the Financial Services Authority has revealed that the third quarter of 2009 brought a 2.8 per cent drop in repossessions from the previous three months.

Commenting on this, Russell Hamblin-Boone, head of communications at the Finance and Leasing Association, said: "We have seen a fall in the number of house repossessions that are happening in quarter three, which we welcome with caution."

However, he added, while this suggests matters are looking up, it is important that measures in place to support householders with mortgages remain.

He went on to say that the key to the mortgages market as a whole is still to reduce the wholesale cost of such finance.

Recently the government revealed that extra help is being extended to those facing the threat of home repossession.

Housing minister John Healey said he was providing an extra £4 million to enable more free advice to be given for this purpose.