Research shows that 2011 had the lowest total number of repossessions since 2007.
Figures from the Council of Mortgage Lenders showed that a total of 36,200 UK homes were repossessed in 2011, which had fallen from last year's total of 37,100.
The total number of repossessions was lower than the CML's original forecast of 40,000.
These figures are believed to have resulted from the low levels of interest and forbearance by lenders.
Figures from the CML showed that the amount of people falling into arrears on mortgage payments also improved slightly on the previous year.
"Low interest rates and good arrears management by lenders are helping the vast majority of those borrowers who face difficulties to keep their homes and get back on track," said CML director general Paul Smee.