Shorting the UK property market

katastrofa · May 9th, 2011, 7:23 am

Let's say I am convinced that the UK housing market is in for slow but prolonged decline. Can I (as a physical person, not a hedge fund) short the housing market without laying out a large amount of capital?

Cuchulainn · May 9th, 2011, 7:54 am

In that case, will you not have an illiquid asset in 20 years time? Options??

willvdep · May 9th, 2011, 9:24 am

direct method = ig index has/used to have some cfd based on the nationwide/halifax house price index. indirect method = short the shares in bovis, barrat, redrow, taylor wimpey etc. nb there might be an inverse etf on the ftse house sector but you are basically just shorting reckitt benckiser with that.W

katastrofa · May 9th, 2011, 9:50 am

Thanks.

rmax · May 9th, 2011, 11:48 am

QuoteOriginally posted by: katastrofaThanks.If you have currently bought: then would sell your house and begin to rent... I know someone who did this back in 2002 convinced that the market would go down... d'oh.

Cuchulainn · May 9th, 2011, 11:51 am

QuoteOriginally posted by: rmaxQuoteOriginally posted by: katastrofaThanks.If you have currently bought: then would sell your house and begin to rent... I know someone who did this back in 2002 convinced that the market would go down... d'oh.Did anyone read the famous edition of the Economist in 2003?

Stew · May 10th, 2011, 9:04 am

The spreads on the property based CFD/spread bets are quite prohibitive.