HOUSE prices in Folkestone have risen by a third and have even doubled in some areas.

The town is experiencing a real boom as investors rush to buy on the expectation of local train services being allowed to use the Channel Tunnel Rail Link.

Sue Bourne, branch manager at Ward & Partners estate agents, Folkestone, says that outsiders are flocking to the area to buy.

“In the last year we’ve seen the price increase that everyone else has seen, but, in addition, we’ve had more buyers from out of the area than ever before.

“There has been great interest in investment purchases, holiday homes, and buy to let.

“People are buying with a view to long-term returns, allowing perhaps three to five years to realise their profit. We have had a very positive October and, although prices have spiraled, there is still room for more growth.’’

Typical prices now, says Sue, are £95,000 for a two-up, two-down which three years ago cost 45,000; while a three-bedroom semi, which cost £125,000 two years ago, now costs £175,000- £185,000.

“Anything with sea views is at a premium and in outlying villages such as Sandgate prices have doubled,’’ adds Sue.

Andrew Dickinson, Ward & Partners Managing Director (East Kent), says: “The Folkestone office has seen a 30 per cent increase in sale prices compared with an average of 20 per cent in other areas. This is nearly a third more than last year.’’

Kent County Council is pressing the Strategic Rail Authority to consider the regeneration benefits from commuter services making full use of the new high speed line, starting in 2007.

Other possible and ongoing developments are adding to the area’s hotspot interest.

Ward & Partners is handling several new conversions in the area which have aroused a great deal of interest, and many of which are already sold.

There is also strong interest in the new housing, shopping and entertainment development at the Rotunda, the former fun park.

There has also been talk of the possibility of the Pullman returning to Folkestone, and with it a cross-Channel service.

Even without these exciting prospects, Folkestone has so much to offer, says Sue.

“Folkestone offers great value for money, especially for Londoners used to very high prices.

“As well as the sea, we have excellent facilities and good schools for all ages, including private and grammar. Canterbury and the university are just 20 minutes away by car.

“People who would never have considered Folkestone come along and investigate, are struck by the quality of life and value for money and buy anyway.’’