BUZZ-UK housebuilders: land prices make buyside bullish

** Odds stacked in UK housebuilders' favour, largely down to favourable land prices -- even amid inconclusive UK General Election, prospect of rate rise & sector hitting a record

** If anything, PMs have ruled out election risk given political parties' thoughts aligned: country needs more houses

** Unlike previous cycles - where land prices rose faster than house prices & hit housebuilders' margins - land prices sustainable against backdrop of smaller, privately-owned bank-financed housebuilders struggling to access finance to compete

** Buyside see scope for sector to make record margins, & cash returns are a reality

** Persimmon (Other OTC: PSMMF - news) most expensive (biggest & considered safest) on 2.3x P/B, vs Taylor Wimpey (LSE: TW.L - news) (TW), Bovis Homes (LSE: BVS.L - news) , Bellway (LSE: BWY.L - news) , Redrow (LSE: RDW.L - news) , Crest Nicholson (CN) on 2x P/B or less, Thomson Reuters data shows

** Mark Swain, a co-manager of Smith & Williamson's long/short Enterprise fund, long TW & CN, short Persimmon (little valuation or margin upside left)

** CN held by Old Mutual Global Investors' UK Smaller Companies fund, run by Dan Nickols; sees scope for CN in 2017, based on current share price, to give divi yield of >8 pct

** Thomson Reuters UK Homebuilding index hits record on Tuesday (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)