Peak in interest rate cycle reached

The rises in UK interest rates over the past year are beginning to have more noticeable effects as the economy cools. Retail sales have flattened and have even shown some sequential declines recently and, more importantly, house prices are flattening too. Mortgage approvals have fallen dramatically in recent months, and sales of houses relative to total supply has contracted too. This points to a slower housing market, and lower prices could start to appear in coming months. It is unlikely that house prices will correct dramatically and the declines that we will see should be relatively sma...