It has always been true that on a regional basis, some things can dramatically affect not only house prices (both positively and negatively) but also the speed with which propertes sell and rental values. The football analogy gives a good illustration of how prices can be affected on a local basis. This is inevitably a factor with the more popular clubs as there will always be die-hard fans who want to live as close to their idols as possible – and this effect spills over into all sorts of merchandise and services such as bespoke financial services like credit cards, loans and dedicated TV channels.
But more recently a number of other factors have influenced regional property hotspots. One of the most significant is the rise in the importance of catchment areas for good schools. Parents are desperately keen to get their children into good state-supported schools and since the government decided to publish league tables, the best schools have been easy to spot and have started to attract parents looking to get their children into the schools. In response some schools have tried to limit their catchment areas as many have found themselves with more applications than places.
Nationally, I am sure that one reason for the explosion in northern house prices compared with those in the South is the growth in broadband web access which has effectively made the country smaller and enabled more people to work remotely. Thus being physically based in the South is less important and buyers can head North in search of more affordable housing.