The number of homes repossessed from borrowers in the third quarter hit an all-time low according to data from the National Institute of Statistics (INE).

There were 2,306 mortgage repossessions set in motion by lenders in Q3, down 20pc on the same period last year and the lowest level on record in the data published by the INE, which goes back to 2014.

With borrowing costs rising rapidly since the start of 2022 along with a cost-of-living crisis you would expect mortgage repossessions to increase with financial distress but this has not happened. Mortgage repossessions have declined since interest rates started rising.

Repossessions declined in all areas of interest to foreign investors, as illustrated by the next chart.

The repossession of newly-built homes fell more than the average, by 25pc, to just 197 cases in the three months between July and September. 

If mortgage repossessions are anything to go buy, there is little sign of distress in the Spanish housing market.