<p>The housing market is heading for a possible “sharp slowdown” rather than a crash, according to David Smith, economics editor of <i>The Sunday Times</i>.</p> <p>Giving an overview of the current economic landscape at <i>Housebuilder’s </i>Housing Market Intelligence Conference in London yesterday (October 6), Smith said that “storm clouds” were gathering over the housing market after the “extraordinary” house price boom of the pandemic. </p> <p>“Demand will be affected by lower confidence and higher mortgage rates. People don’t want to put houses on the market when they don’t think they will get a good price for it,” Smith stated. But this shift was set to create “low level equilibrium, so maybe we’ll see a sharp slowdown rather than a crash”. </p> <p>The UK economy was in troubled waters due to energy and gas price shocks, with the country's heavy reliance upon the fuel as a primary energy source, Smith said. Real living standards were set to fall and consumer confidence had weakened. </p> <p>But he cautioned against getting “too gloomy” about the prospect of a recession, “particularly as the government has taken energy rises off the book,” with its announced price cap.</p> <p>At the same time, Smith noted the “shock” the …