The UK property market October 2025

Demand for purchase mortgages has certainly tipped over the edge of a cliff, having run at around 40% of our activity all year to less than 10% of applications submitted in September and October. There has been a trickle of potential homebuyers looking to set their budgets and obtain Decisions in Principle, but their home hunting is being curtailed by the huge uncertainty the government has manifested, as everyone sits awkwardly waiting for budget changes. With low confidence affecting consumers and businesses UK-wide, it's hard to see what magic wand the Fairy Rachel will wave to make this all better in a months' time.

October has been steady, but there’s no denying a more cautious tone among borrowers. Many households are tightening the purse strings and waiting to see what next month’s Budget brings before committing to major financial decisions or renovation projects. The appetite is still there, but confidence has taken a temporary step back. That said, every lull in this market tends to set the stage for a rebound. We expect Q1 2026 to come out swinging driven by lender competition, refreshed product pricing, and pent-up demand from those who’ve delayed decisions this autumn. The ingredients for a strong start to the new year are already forming.

October’s felt pretty flat, not a crash, just cautious. Buyers are holding off to see what Rachel Reeves does in the Budget, and sellers are slowly waking up to the fact that overpricing just isn’t flying anymore. There’s still demand, especially from first-time buyers, but it’s very price-sensitive. The mood’s a bit ‘wait and see’, which is typical before big announcements. Everyone’s hoping, yet doubtful, that the budget will bring some spark back into the market.