With Americans defaulting on their mortgages at a rate not seen since the 1930s Depression and house prices in main US metropolitan markets 12.5 per cent off their mid-2006 peak, uncertainties are rising in other countries where housing values have enjoyed a big recent run-up.

Spain, for one, is showing a sharp contraction in the number of home sales, often the precursor to a price crash. But it is Britain where the similarities are arguably greatest.