More signs emerged that the local housing market has peaked after the Royal County experienced one of its sharpest falls of the year, as the gap between asking price and offer price grows. With less viewings, houses are taking longer to sell, so sellers are more likely to accept a lower offer.

Berkshire had the fifth biggest fall of 16 counties where prices went down, according to Hometrack. Another 17 counties saw prices stay put, and 24 - including Cornwall, Norfolk and North Wales - enjoy big rises.

Hometrack economist John Wriglesworth said: "Rising interest rates and speculative fears of a housing market crash has resulted in falls in house prices across many parts of the country.

"The largest falls were mainly recorded in the South East and Central Midlands, whereas counties on the outskirts of the country have maintained their upwards momentum.

"We anticipate that a ripple of negative price changes will spread out over wider regions of the UK, as the full effect of the most recent interest rate rises have not yet fed through to the market.

"We have reduced our house price inflation forecast to 5% (from 8%). House prices have only risen by 3.6% so far this year and we feel that the market is now approaching its peak. We still do not anticipate a housing market crash, expecting zero house price inflation for 2005."

West Berkshire is in the top 20 most expensive districts for housing in the UK, which has forced many workers to live further away and commute to jobs in Newbury.