Taxes and regulations a bigger threat than end of house boom

IT’S cold turkey time for the British economy: the great housing boom came to an abrupt end last week, with prices suffering their first monthly drop in two years. Instead of simply remortgaging their homes whenever they want some easy cash, consumers will soon have to start saving and scrimping if they want to continue splashing out on DVDs and designer clothes.

Fortunately, unless the 0.6% drop in house prices in August - according to the Halifax - turns into a rout, consumer spending is unlikely to collapse. It probably won’t fall at all, merely grow at a much slower rate.