I was stunned by this report on the BBC that reveals that the UK house market is overvalued. Stunned in so far as credit rating agency Fitch estimate it’s only by 20%.
Now I’m not exactly stupid but the world of finance and in particular house prices just confuses me. If all house prices rise then the only way I can see to actually make money is to downsize, renovate or move to a less desirable area.
Of course there’s being a house builder, mortgage lender or estate agent but apart from these areas I just can’t see where new wealth is being created.