As more survey data on asking and selling prices rolls in from mortgage lenders and estate agencies, it is clear that the UK housing market peaked in August with the turning point most likely being September’s mini-Budget which spooked financial markets and consumers.

While there is usually a seasonal slowdown in the final quarter of the year, selling prices are now rising by mid-single digits on an annual basis but have begun falling on a monthly basis.

‘Economic headwinds including rapidly rising mortgage costs mean some would-be buyers may have paused their plans for the foreseeable future,’ says online property portal Rightmove (RMV).

The company reports the number of home views is up 11% on last year, suggesting potential movers are watching the market and weighing up their options for 2023 when it predicts the emergence of a ‘multi-speed, hyper-local market’ with some locations and property types doing much better than others.

Housebuilders have seen the writing on the wall with most reporting a sharp drop in reservations since September and tailoring their production towards a less robust outlook.

Berkeley Group (BKG) announced last week it was keeping its earnings guidance for the year to next March but lowering its forecasts for 2024 and 2025 by 16% or £200 million per year.

Despite bouncing from their October lows, shares in most UK developers are still down more than 40% this year.

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