Is there a “local” property cycle?

This week on Ask Rob & Rob, an anonymous caller asked:

Is there a “local” property cycle?

Obviously all parts of the UK are moved by the same macro factors like interest rates and lending, so you’re not going to have anywhere that’s wildly out of whack, but as for how local you can take this theory, it seems unlikely that it can take place within a city.

That said, you can see a ripple effect from a city, which can potentially impact surrounding towns and smaller villages. Nothing’s guaranteed, but by seeing where price growth takes places, you should be able to predict – all things being equal – where it will spread to afterwards.

Within cities there’s always going to be areas that rise and fall in value – shops moving in, regeneration, etc – but it’s not going to happen in a cyclical way, even though it’s something to strongly consider when looking at where to invest.

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