A crash is unlikely, but the fall in UK home prices has a long way to go | Nils Pratley

First-time buyers face high mortgage rates, while soaring rents and bills hinder saving for deposits - no wonder there's a big slowdown

Inquiries by would-be buyers of homes hit an eight-month low last month, according to the Royal Institution of Chartered Surveyors, which talked about a renewed deterioration in UK home sales". On the same theme, Barratt Developments' trading update on Thursday related a near-halving in reservations from first-time buyers year on year. And the estate agent Winkworth warned this week on profits because of a slump in activity.

In other words, the news from the housing market is exactly as you would expect when buyers are adjusting to the new reality of sharply higher mortgage rates. The big slowdown is on, even if Barratt added that demand among existing homeowners was more resilient. A typical two-year fixed deal has risen to 6.66%, a 15-year high on Moneyfacts data.