“ Although all political parties express concern about high housing costs, they are wary of a price drop that would significantly dent the wealth of owner-occupiers, who are still a majority in most parts of the UK. The scale of private investment in housing means that a sustained price fall would do wider damage to the economy, through its effect on consumer confidence and household balance sheets. The prospect of ongoing price falls and more expensive loans is likely to make households more cautious on spending, even if they avoid negative equity (where the house price sinks below the outstanding mortgage). The corresponding shrinkage of bank and building society assets would constrain their new lending, further dampening investment and consumer demand.”