The following report shows you how an 18-year cycle — based on 200-years of UK property prices — can help you predict and prosper from price trends in stock markets, commodity markets, property markets, and even bonds and currencies. The work on which these forecasts are based is published each week in the UK-edition of Cycles, Trends, and Forecasts. You’ll find a description of that publication and its editor below. You can also learn more by visiting www.southbankresearch.com
Akhil Patel, Editor, Cycles, Trends and Forecasts

How the real estate cycle drives economies and investors

Real estate speculation drives a fundamental cycle of boom and bust in the economy. Economic growth leads to higher real estate prices as demand for property (from expanding businesses and flush households) grows.

This increase in property prices is ultimately driven by land values: a house costs much the same to build, in terms of labour and materials, regardless of where you build it — it’s the location that makes the difference to the value.

Today’s property investors understand this as ‘locational value.’ The technical term is ‘economic rent’. Economist David Ricardo first articulated this idea in the early 19th century.

Once you understand this fundamental law of economics — the Law of Rent — you’ll see that a repeat of the 18-year property cycle is all but inevitable.