The number of people extending their mortgages to generate extra disposable income has fallen, according to the Bank of England.

The data reveals the amount of housing equity withdrawal fell from £7.4bn in the last quarter of 2007 to £5bn in the first quarter of 2008.

The findings are bad news for industries that rely on higher consumer spending power such as retailers, DIY stores and home furnishing outlets.

Property prices have fallen by 6.3% over the past 12 months, according to Nationwide, meaning the typical home has lost £11,500 in value.