Net mortgage approvals for house purchases slid by nearly 600 to 65,000 in October, according to the BoE, while approvals for remortgaging dropped by 3,600 to 33,100, the lowest level since February 2025

The UK’s property sector showed signs of strain in October as uncertainty ahead of the autumn budget weighed, with the number of mortgages being approved for house purchase sliding, according to Bank of England (BoE) figures.

Net mortgage approvals for house purchases slid by nearly 600 to 65,000 in October, according to the BoE, while approvals for remortgaging dropped by 3,600 to 33,100, the lowest level since February 2025. Net mortgage borrowing by individuals eased to £4.3 billion, down from £5.2 billion in September.

Agents and analysts said buyers were unnerved by late-month speculation that the chancellor was considering a mansion tax on homes valued at £2 million or more.

Nathan Emerson, chief executive of Propertymark, said: Speculation surrounding the autumn budget may have played a role in contributing towards a decrease in the number of mortgage approvals during this period.

The government ultimately introduced a high-value council tax surcharge in England on homes over £2 million, effective April 2028. The measure will comprise four price bands, starting with an annual £2,500 surcharge for properties above £2 million and rising to £7,500 for those worth more than £5 million.

Jason Tebb, president of OnTheMarket, said: Intense speculation surrounding the budget and what it might have in store for the housing market had an impact on approvals for house purchases – an indicator of future borrowing.

Jeremy Leaf, the estate agent and former RICS residential chairman, added: Mortgage approvals provide the best evidence of likely market activity over the next few months, and it’s clear from these figures that speculation about the chancellor’s budget took its toll.

Remortgaging activity, which only counts borrowers switching to a different lender, also slumped. The 33,100 approvals recorded in October marked the weakest reading since February.