The Bank of England’s latest Money & Credit release (August 2025) shows approvals softening month-on-month: 64,680 approvals for house purchase (down 500 vs. July) and 37,891 for remortgaging (down 869). Note the BoE series for “remortgaging” only counts switches to a different lender, so it excludes product-transfers with the same bank. 

Seasonality normally cools activity into late summer and autumn, but the current dip sits alongside broader uncertainty ahead of the 26 November 2025 Budget (Chancellor Rachel Reeves), which markets are watching closely for property-related tax moves. 

High-value end is under more pressure

Zoopla reports a clearer slowdown above £500,000: buyer demand down 4% year-on-year, and new listings down 7% over the five weeks to 21 September. At £1m+, demand is down 11% and listings 9%. The drag is most evident in London and the South East given their larger share of high-value homes. 

Prime Central London has also softened: Knight Frank’s August index showed -3.2% YoY, and they’ve revised 2025 PCL price growth to −4%. That aligns with on-the-ground reports of more measured bidding and lengthier negotiations at the top end. 

Stamp Duty context (the “holiday” really has ended)

The temporary SDLT threshold increases introduced in 2022 expired on 31 March 2025. From 1 April 2025, the main nil-rate band reverted to £125,000, and first-time buyer relief reverted to £300,000 (with relief available only up to £500,000 property value). That sunset likely pulled some demand into Q1 and has since raised transaction costs for many buyers. 

What buyers and sellers are doing now

• Buyers are negotiating harder to contain total cost (price + SDLT + mortgage), and many at the high end are waiting for Budget clarity before committing. 
• Sellers—especially in prime/ultra-prime, are trimming expectations to meet thinner, more price-sensitive demand. Recent commentary and tracking indices at the top end support that picture. 

Bottom line

Activity has cooled modestly, not collapsed: house-purchase approvals are slightly lower, and remortgaging (to new lenders) is also down on the month. The high-value segment is feeling the chill most, with tangible drops in both demand and new listings. The immediate swing factor is the 26 November Budget: credible detail (or lack of it) on property-related taxes will likely determine whether activity picks up or pauses further into year-end.