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Kent 'bucking the trend over house prices'

The graph shows 2006 house prices were strong in parts of Kent where it took commuters less than two hours to travel into London
The graph shows 2006 house prices were strong in parts of Kent where it took commuters less than two hours to travel into London

THE housing slump may be causing concern for many parts of Britain but in Kent property analysts are telling a different story, predicting price growth of up to 4.5 per cent next year.

House prices dropped by 0.8 per cent last month - the largest monthly fall since 1995 - and there are forecasts of property values plunging in 2008.

But two UK-wide property companies and the National Association of Estate Agents believe that Kent will buck the trend.

One of Britain's leading estate agents, Savills, believes Kent and the South East will be a stronger market in comparison to the rest of the country.

It states that they will not suffer the same "affordability constraints" affecting other parts of the UK because of the wealth and demand coming from London.

A strong commuter belt through to Weald and top secondary schools are also seen as key factors to driving the county's housing market.

Similarly, property website Hometrack believes with improved transport links into Kent and huge investment in areas such as along the north Kent coast and Ashford there will be increases in house prices.

Lucian Cook, director of residential research from Savills, said: "The South East is expected to be a stronger market in comparison to the rest of the country, which is reflected in our 2008 forecast of 4.5 per cent annual growth, which is larger than our UK forecast of 3 per cent.

"This is because of the levels of London generated wealth and demand, which will mean the South East won t be as affected by affordability constraints as other parts of the country.

"Kent remains well placed to take advantage of this demand because of the great schools within the grammar school system and the strong commuter belt that runs through to Weald, which all have a real impact on the housing market."

Hometrack predicts that house prices will rise by an average of 1.5 per cent in the South East for 2008.

The company's director of research, Richard Donnell, predicts growth could even be higher in parts of Kent, because of the huge investment and the benefit of transport links in certain areas.

He said: "When you look at the infrastructure improvements planned for Kent then actually it could be quite interesting, particularly in areas with domestic rail and the Channel Tunnel Rail Link services.

"Making Kent more accessible will bring in more demand into the area and growth in these areas could be bigger than 1.5 per cent.

"Equally, in areas of strong growth in Kent from Tunbridge Wells to Sevenoaks, these might underperform in the next six months because of the growth slowing from a high base."

The National Association of Estate Agents s group chief executive, Peter Bolton King said: "It goes back to that phrase; location, location, location.

"This statement that house prices is slowing up everywhere is just not the case. There is no doubt in my mind that in parts of Kent and the South East they will be above the flat line of house prices.

"There is a tremendous pressure in Kent for the supply of housing because of the increasing migration of people, who work in London.

"I do not believe prices in the South East and Kent will go down especially where there are good commuter links and with the recent interest cut, it will all help the market."

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