<p><span>The UK economy is likely to escape a “big downturn” before levelling to a “period of stagnation,” according to David Smith, economics editor of <i>The Sunday Times</i>. </span></p> <p><span>Speaking at <i>Housebuilder’s </i>Housing Market Intelligence Conference in London, Smith said the housing market had been “resilient” throughout the Bank of England’s run of interest rate rises in response to rising inflation. As with others speaking at the conference, he said it was likely inflation had reached its peak. But he noted that mortgage activity had dropped against the tough economic backdrop. </span></p> <p><span>Housebuilders should still be mindful of “shocks and surprises,” Smith warned. But he added: “There are still signs of life in the economy; I hope they continue.” </span></p> <p><span>He said: “I don’t think we’ll have a big downturn. I think we’ll level out to a period of stagnation.” </span></p> <p><span>Also speaking during the afternoon of the conference, Robert Colvile, director of the Centre for Policy Studies, echoed HBF's Stewart Baseley’s earlier sentiments that government appeared to be taking a more conciliatory approach to housebuilding after a period of seeming hostility. </span></p> <p><span>He explained that at the Conservative party conference this week, levelling up secretary Michael Gove had expressed the …