House Prices "Heavily Undervalued" says Times article

HAMISH_MCTAVISH

Is Britain heading for another housing bubble?

Far from it, according to a senior economist.

Residential property is heavily undervalued when measured against rents, according to Simon Ward, the chief economist at Henderson Global Investors, who dismisses warnings that Britain is heading for another boom and bust.

"Worries about a housing bubble are premature. Unless you see some reason for believing supply is going to increase substantially, I don't think there is any prospect of another housing bust.

"Based on the rental yield, where rents are divided by the value of the housing stock, I estimate that property is 13 per cent under-valued.

http://www.thetimes.co.uk/tto/business/industries/construction-property/article3830936.ece

More media and economists dismissing the "bubble meme" Dev likes to propagate.

Yesterday he claimed it's "only one article".

Today it'll be "only two articles".

In 6 months he'll claim it's "only a few hundred articles".

Anyway, with house prices "heavily undervalued", it's obvious that the wider HTB scheme to reduce mortgage rationing is very welcome and will enable many more people to buy at the undervalued levels of today.

Excellent news.

:beer:

shortchanged_2

I dunno about Devs only one article claim but your multiple ramping threads are getting a bit extreme.

You tend to do this Hamish when you are a bit concerned about things. Is everything OK?

HAMISH_MCTAVISH

shortchanged wrote: »

I dunno about Devs only one article claim but your multiple ramping threads are getting a bit extreme.

You tend to do this Hamish when you are a bit concerned about things. Is everything OK?

You tend to resort to ad hominems when you are frustrated that prices are rising.

Never mind Shorty, prices will fall again in another 15 or 20 years.;)

chewmylegoff

Not to split hairs, but isn't this an economist at Henderson Global Investors rather than the opinion of the Times newspaper.

I wonder if you agree with some of Mr Ward's other writings. Let's start with this one:

http://www.ft.com/cms/s/0/56d345aa-38ee-11e0-b0f6-00144feabdc0.html#axzz2at68eD7o

tim123456789

The guy's a nutter.

With 5% being a "normal" yield (before expenses) on a property prices against rents are, if anything, far too high.

For a risk investment that requires some effort 5% is peanuts. No commercial organisation would work on this margin.

Comparing the return with deposit rates is false as putting money on deposit requires zero effort (and is almost zero risk)

tim

92203

Where does this leave us then Hamish? The lack of supply cited in the article is artificially created by overly restrictive planning legislation. Less than 10% of the land in the UK is actually built on.

Yet again, you seem to be positively rejoicing in the fact that the basic need of shelter is becoming more expensive for those less fortunate than you.

If thinks keep moving in the way you want them to, where will it all end? People living their entire lives in HMOs?

Graham_Devon

shortchanged wrote: »

I dunno about Devs only one article claim but your multiple ramping threads are getting a bit extreme.

You tend to do this Hamish when you are a bit concerned about things. Is everything OK?

There never was such a claim.

System

HAMISH_MCTAVISH wrote: »

http://www.thetimes.co.uk/tto/business/industries/construction-property/article3830936.ece


Yesterday he claimed it's "only one article".

Today it'll be "only two articles".

In 6 months he'll claim it's "only a few hundred articles".

T'was ever thus. I remember when you first spoke about a housing shortage, I thought the resident morons were going to run out of laugh emoticons.

HAMISH_MCTAVISH

Joeskeppi wrote: »

T'was ever thus. I remember when you first spoke about a housing shortage, I thought the resident morons were going to run out of laugh emoticons.

Yep.

I remember those days.

The shortage deniers were out in full force on this board.

Funny how they've all changed their tune now, but still don't have the good grace to admit they were wrong and we were right.

HAMISH_MCTAVISH

Graham_Devon wrote: »

There never was such a claim.

Ahem......

Graham_Devon wrote: »

"the media" isn't solely cityam.

You make out the media is changing stance. They are not. Only yesterday there was another article on the beeb warning off the problems of help to buy after taylor wimpey announced it's surge in profits.

One swallow does not make a summer

What you probably should have said is "look, I've actually found an article that says some half positive stuff!"

Graham_Devon

That was regarding help to buy hamish, even says so in what you have quoted, of which this article is nothing to do with.

I guess I'm muddling though.