Rise in new buyer enquiries needs to be treated with caution

At first glance, yesterday brought some rare positive news from the beleaguered housing market. According to the CML, first-time buyers’ share of mortgage lending rose to a three-and-a-half year high in October, and the RICS new buyer enquiries balance turned positive for the first time in two years. However, on closer inspection, we doubt that either offers much encouragement that the housing market correction is nearing its end.