Goldman Sachs: UK houses "undervalued"

cells

Over the last decades france has built 400k homes on average per year while the uk has been closer to 150k

both nations have very similar populations and population growth so it stands to reason that bith should have built at a similar rate but that isn't what happened.

The great crash stopped uk HPI but now that credit is flowing again the uk is goig to roar ahead. I would not be shocked to see prices double iver just the next 3-4 years

cells

There are the bears and the bulls but virtually non of the two consider anything outside prices. The uk building far too few homes is having a huge impact on the make up of the housing stock

right now private renting (ie BTL) is increasing at a massive unprecedented rate. Around 1000 homes are being added to BTL.....DAILY

so its not just a matter of prices and how quickly they will increase. The current situation is quickly converting the nation to renters rather than owners.

we have already gone from just under 10% privately rentig to now 20%.

If things continue as they are then come 2027 the UK will have ~29.5 million homes of which ~10milliom will be private renters and 5million social. So perhaps as soon as 2027 just 13 years away, less than half the homes may be owner occupied. ....that isn't a bright future

BillJones

dryhat wrote: »

With $700 trillion of worthless derivatives sloshing around.

Hmm. What makes you say that tey are worthless? And if they are worthless, what does the $700 Trillion represent?

Are you counting a zero strike call on a gilt as worthless? Is BA's hedge on jet fuel worthless?

Or did you just make up the "worthless" thing, in the absence of having a point?

antrobus

BillJones wrote: »

Hmm. What makes you say that they are worthless? ....

They're valued in dollars. And dollars aren't worth anything. Only bitcoins have value. Just wait; bitcoin derivatives are on their way, then you'll see real value.:)

(Just type 'bitcoin derivatives' into Google and see what pops up.)