A construction worker stands on a scaffold platform on a new housing development under construction in Knutsford, Britain June 1, 2023. REUTERS/Phil Noble

LONDON (Reuters) -British lenders expect to see unchanged demand for mortgages in the last three months of 2025, according to a Bank of England survey published on Thursday that added to other signs of a cooling of the housing market.

The BoE's quarterly Credit Conditions Survey showed lenders reported no change in demand for loans for home purchases in the July-to-September period and a similar flat picture was expected between October and December.

Karim Haji, global and UK head of financial services at KPMG, said mortgage activity appeared more mixed than earlier in 2025 with some signs of easing demand for house purchases.

"This suggests the market may be pausing for further clarity on rate cuts rather than an abrupt downturn in buyer interest," Haji said.

The BoE held its benchmark Bank Rate at 4% in September and it has said the outlook for further reductions in borrowing costs depends on how the persistent inflation pressures in the economy develop.

The Royal Institution of Chartered Surveyors said last week that Britain's housing market lost momentum for a third month in a row in September, potentially due to worries about tax increases in finance minister Rachel Reeves' November budget.

The BoE's survey on Thursday showed lenders expected overall demand for unsecured lending to be unchanged in the fourth quarter, suggesting consumers were turning more cautious about borrowing.

(Writing by William Schomberg, Editing by Paul Sandle)