House prices in Kent grew at a slower pace than the national average last year, with average prices varying by more than £225,000, it has been revealed today.

Property values rose by 3.5% year-on-year to November 2013, slightly below the national rate of 3.8%, according to the Kent Property Market Report.

Compiled by Kent County Council, Locate in Kent and Caxtons Chartered Surveyors, the annual study showed average house prices across the county ranged from £406,442 in Sevenoaks to £181,332 in Thanet.

The report, which assesses the performance of the property market in the county, found that for the first time since 2006 developers have been making a return on their investments in office builds.

However, rental growth is still negative at -0.01%. Average high street rents dropped for the first time in two years, but yields kept pace with the UK average.

The report, unveiled this morning at Eastgate, Northfleet, says confidence is returning to the county thanks to a series of major infrastructure projects announced in the last year.

These include the development of a 15,000 home garden city at Ebbsfleet, the Government’s commitment to a third Thames Crossing and the further development of high-speed rail.

The chairman designate of the Ebbsfleet Development Corporation Michael Cassidy, who is set to lead the development of a garden city, spoke at the launch.

The Eastgate community centre is at the heart of some of north Kent’s key regeneration plans, including Ebbsfleet and the proposed £2bn London Paramount Entertainment Resort on the Swanscombe Peninsula.

The report revealed that warehouse rents in Kent continued to fall at a faster rate than the South East and UK averages, but yields continued to harden, reflecting increasing investor appetite in UK property.

Industrial space continues to be one of Kent’s strongest suites, continuing positive growth and outperforming the rest of the South East and the UK.

Kent County Council cabinet member for economic development Mark Dance said: “What it shows is that Kent’s growth is no flash in the pan.

“It shows we have real strengths in sectors likely to continue to grow, such as life sciences, low carbon and environmental goods and services, advanced manufacturing, the land-based economy and the creative and digital industries.

“Supporting this, the £60 million available in financial support programmes to back businesses with the potential for innovation and growth has made a real difference to the task of attracting investment in the county.”

Caxtons chairman Ron Roser said: “On the back of the return to growth in the UK property sector, Kent, along with the rest of the South East, is benefitting.

“New local and central government initiatives have helped to bolster activity, especially with inward investment into the county. Approved developments at Ebbsfleet and Swanscombe will ensure sustained sector employment in the area for some time to come and show a massive improvement on the position we were facing 12 months ago.

“Confidence has returned across the county whether in the commercial or residential field. This year’s report shows that Kent’s property sector is gaining traction in a strong economy and is determined to maximise opportunities. A welcome return from the darker days of recession.”

The Kent Property Market Report identifies significant economic development across Kent. These include:

• A sharp increase in development across the Thames Gateway, the area stretching out from east London along north Kent to Sheppey and south Essex. This includes new homes at Eastern Quarry and approval for redevelopment programmes in Lowfield Street, Dartford, and Gravesend’s Heritage Quarter, as well as work starting on the Chatham Waters project.
• The appointment of a development partner for Swale Council’s regeneration of Sittingbourne town centre.
• The opening of the £95m Kent Institute of Medicine & Surgery, the construction of a new Next Home & Fashion store and the publication of a masterplan for an extended Mall centre in Maidstone.
• The start of the developments at Knights Wood and Royal Wells Park in Tunbridge Wells, along with the go ahead for the dualling of the A21 between the town and Tonbridge.
• The success of interest free loans available through the Government-funded Expansion East Kent programme, helping new and existing companies to grow and create jobs, notably at Discovery Park, Sandwich.

Some 56 companies were helped to launch, move to or expand in the county with the help of Locate in Kent within a year.

“Regeneration in Kent and Medway is growing apace, which makes the county an attractive proposition for companies looking to move or grow here..." - Locate in Kent's Paul Wookey

The agency – tasked with encouraging businesses to invest in the area – helped create 1,398 jobs and retained 817.

This included investment from 17 overseas companies, with six from the US, three from Italy and others from Ireland, Switzerland, Canada, the Netherlands and Australia.

Chief executive Paul Wookey said: “Regeneration in Kent and Medway is growing apace, which makes the county an attractive proposition for companies looking to move or grow here.

“The report highlights that we have an enviable offer across all business sectors, including excellent facilities for hi-tech and life science companies, with more in the pipeline, and some key infrastructure projects being planned and delivered.”