LONDON (AP) — UK housing repossessions declined by 13 percent in the fourth quarter although the full-year total still reached a 14-year high, the Council of Mortgage Lenders said yesterday.

The council predicted that 2010 would be another difficult year for many property owners, especially if interest rates rise from current lows.

Lenders repossessed 10,200 properties in the fourth quarter, down 13 percent from the third quarter and two percent lower than in the same period a year earlier.

The full-year total of 46,000 was significantly better than the council's forecast of 75,000 at the start of last year. The number of repossessions was 40,000 in 2008, the council said.

"The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates, and a great deal of concerted effort by lenders, government and the advice sector to help borrowers to address financial difficulties when they occur," said Michael Coogan, the council's director general.

"We are not out of the woods yet — 2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise. But borrowers should feel reassured that lenders want to help them keep their homes wherever possible," Coogan said.

The council reported that 188,300 mortgages had arrears equivalent to 2.5 percent or more of the outstanding balance at the end of the year. That was down 3 percent from the third quarter.