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# UK mortgage approvals and high-end demand: where things stand - August 2025
- URL: https://wisener.net/uk-mortgage-approvals-and-high-end-demand-where-things-stand-august-2025/
- Published: 2025-10-01T23:00:00.000Z
- Updated: 2026-10-12T18:28:41.000Z
- Description: UK mortgage approvals dipped in August 2025, with remortgaging weaker and high-value demand cooling as buyers await clarity from the November Budget.
- Author: Lee Wisener
- Tags: Approvals, Mortgage, #Import 2026-10-12 18:55

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. 

![](https://wisener.net/content/images/wordpress/2025/10/Screenshot-2025-10-04-at-09.47.53_1759567863.png)

## 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.