Two more ominous signs about the prime middle-class housing market emerged today.

Credit rating agency Moody's warned late payments for prime UK mortgage borrowers almost trebled by the last quarter of 2008 as upmarket estate agent Savills posted its first annual loss in years.

Nitesh Shah, co-author of Moody's Report, said 90-day delinquencies - late mortgage payments - increased from 0.6% to 1.5% on prime residential UK mortgage-backed securities.

Shah warned: "Lending institutions intend to continue to tighten credit. Although monetary policy is loosening, interbank rates and mortgage interest rates will hit a floor, reflecting residual credit risk."

Meanwhile, Savills today reported losses of £7.7 million in 2008 compared with profits of £85.9 million a year earlier. It halved its dividend to 9p a share and the stock fell 14p to 237½p.

Savills, which issued two profits warnings last year, said the lack of mortgage funding caused a "dramatic downturn" in the housing market last year.

Prices slumped 18% in central London as demand for £1 million-plus homes from the bonus-starved City dried up.

Chief executive Jeremy Helsby said: "Globally, markets have continued to deteriorate and in the light of these difficult conditions we are adopting a very cautious outlook for 2009. A return to higher levels of activity will depend on how quickly confidence returns to the financial markets."