Given the recent doom and gloom about the economic picture, the mood could not have been brighter at the launch of the Kent Property Market Report.

More than 240 people – mostly company bosses – patted each other on the back for another year, celebrating the rewards of operating in a market where demand is high but supply is low.

The report, which was marking its 25th anniversary, asserted Kent’s commercial property market is in a good position to weather the uncertainty created by the decision to leave the EU – a decision which the Office for Budget Responsibility said would cost the Government £58.7 million in extra borrowing.

The research by Caxtons Chartered Surveyors, based in Gravesend, said an upturn in demand is boosting rents, which are exceeding pre-recession peaks at the county’s major business parks by 6%, averaging nearly £240 per square metre.

In the residential market, house prices grew by 13% across Kent in the last year, outstripping growth in London.

Caxtons director Mark Coxon said: “There is a lot of occupier demand still in the commercial property market.

“In the last quarter, companies have been trying to get in before Christmas but are still facing a lack of supply around Kent.

“There is still not enough development and the investment market has trickled away slightly.

"The residential market is coming back slowly but surely, which is good.

“Depending on what is happening with Article 50 next year we are probably on for a strong 2017.”

"Demand is driven by the lack of lenders wanting to lend on commercial projects...” - Cllr Mark Dance, Kent County Council

Although this presents a positive picture for developers, it poses a problem for families and businesses.

Both are unable to afford the going rate on the market and left cramped up in accommodation which is holding them back from expansion.

Kent County Council’s economic development chief Cllr Mark Dance said the lack of supply is stopping exciting start-ups from growing at the pace they are capable of – but placed the blame on lenders.

He said: “Clearly there is a pent-up need. Innovation centres, where start-ups usually begin life, are all full which has created that demand.

“When you look at grow-on space, where you encourage people to come out of innovation centres and get into that next stage, there is more pent-up demand.

“That demand is driven by the lack of lenders wanting to lend on commercial projects.”

Maidstone-based developer Gallagher Properties enjoyed the benefits of the lack of supply when it opened its Nepicar Park development in August.

The company built 15 industrial units near Wrotham speculatively and had sold them all before the development was complete.

Chairman Pat Gallagher said other developers are being held back from similar projects because banks are not prepared to lend them money.

He said: “What’s happened with banking is they have gone from being lunatics to ultra cautious. They want to see so much proof.

“Fortunately we can put all the money in ourselves – or a good proportion – so we are not really relying on the bank. I would dread to think if we were.

“When I meet them they are like a bad salesman. They are mad to talk to you but they are afraid to do business with you.”

In the Autumn Statement, the Chancellor announced £23 billion of borrowing for a national productivity investment fund to get the economy “match fit for growth”.

Mark Quinn, managing director of Canterbury-based Quinn Estates, said one way to help developers build more houses and commercial property would be for councils to put up some of the money.

He said: “You will see development companies setting up within councils, which will run joint ventures with smaller developers.

“That will make it easier. The Government is probably going to have to do some type of Help to Buy for development, where they help underwrite smaller builders.

“We need that kind of thing to come back into the market to help deliver the commercial property and house building this county needs.”

Locate in Kent, an agency which tries to attract companies to move to the county, helped 46 firms to launch, move to or expand in Kent last year.

This created 1,386 jobs and retained 1,085 but chief executive Paul Wookey said economic growth will be held back unless the commercial property sector finds a way to create more premises, particularly for small firms.

He said: “There is definitely a growing demand from smaller businesses. All the serviced offices in Kent are now full.

“Kent is an economy based around small and medium-sized businesses and we must continue to support that because that is where our growth will come from.

“They are quicker to make decisions, they are much more flexible and tend to look at market opportunities a lot faster.”

He added: “Developers are coming forward but there is an issue around the viability of speculative building and the ability to raise finance for it.

“The developers have the appetite to do it but it is a question of whether the funders can support the development.

“We are seeing the type of projects now which we were really hoping to see 10 to 15 years ago when we knew all the infrastructure was coming in. I hope now we can capitalise on all of that.”