House prices in Kent Downs have risen by 115%

by business editor Trevor Sturgess

House prices in Kent beauty spots have rocketed faster in the past decade than in other parts of the county, according to new research.

Kent Downs, an area of outstanding natural beauty (AONB), has seen the highest percentage increase (115%), beaten only by the Northumberland Coast and Solway Coast (both at 124%).

Kent Downs is the nation's third most expensive AONB with an average house price of £320,090, only headed by the High Weald in Kent and Sussex (£329,441) and Surrey Hills (£407,568).

The cost of homes in Kent Downs AONB shot up from £148,970 to £320,090 in the past 10 years.

But the rapid hike - faster than the rise in average earnings - is pricing many people living and working in these locations out of the housing market.

Lloyds TSB surveyed the country's 32 AONBs and found the average increase was 87% - from £125,860 in 2002 to £235,215 in 2012, equivalent to a monthly rise of £911. In Kent Downs, the monthly rise was a whopping £1,426.

The hike in the typical AONB property price since 2002 was nearly three times the 32% increase in average earnings over the same period.

This means that home affordability in these picturesque locations has deteriorated over the past decade.

The average AONB house price is typically seven times higher than average gross annual earnings, up from a multiple of 4.9 in 2002.

The Forest of Bowland (£212,301) is the most expensive AONB outside southern England. Lincolnshire Wolds (£128,608) and Cannock Chase £136,774) are the only two AONBs in the survey with an average house price below £150,000.

Sixty-six per cent of AONBs have a higher average house price than the surrounding region.

Surrey Hills has the largest premium with houses trading at an average of 50% above the average house price in the region.

This is followed by Forest of Bowland and Shropshire Hills, where house prices trade at a premium of 38%.

Suren Thiru, Lloyds TSB housing economist, said: "The relatively high property values in many of these locations reflect the quality of life benefits associated with living in some of our most idyllic beauty spots.

"However, the fact that property prices have typically risen considerably faster than average earnings has created significant affordability difficulties for many of those living and working in such locations."