DESPITE tough times in the housing market, Kent home owners are still sitting pretty says Knight Frank's Paul Hogarth.

As we head into the New Year, all eyes are on what effect the credit crunch is going to have on the property market.

Predicting trends can be difficult, particularly in the current climate, but there's no denying the market is tough.

Those feeling the worst will be the unfortunate few who found themselves taking on more than they should, perhaps borrowing up to five times their salary when the market was at its peak six months ago.

Others feeling the pinch are those who may not have done their sums correctly and bought-to-let in the 'wrong' locations, like town centres where the market is already saturated with rental property.

Being young and naive, I entered the property market in 1988 with a nice little two bed in Acton – I wanted Wimbledon or Ealing, but couldn't get anywhere near the asking prices, so I clubbed together with a mate and spent £90,000 in May, 1988.

The next year, after dual MIRAS tax relief was dropped, the 1980s boom ended and negative equity started to appear at dinner parties, by which point, my flat was worth £68,000.

Three years later, in 1991, I moved out to get married and had no equity to show for three years and thousands of pounds worth of improvements. But, eventually, prices rose again, and in 1994, it re-sold for £128,000.

So, for those feeling the squeeze, if you can ride it out, you shouldn't lose out. As we've all seen, values go up and down, but in the longer term, property is generally a safe bet.

In a tougher market, location counts for a lot, and I believe that generally speaking Kent has the fundamentals to keep property prices from falling.

The county is unique among the Home Counties because of its diverse make up; rich unspoilt areas of countryside coupled with large prosperous towns, many of which are within easy commuting distance of London or mainland Europe.

Kent is enjoying massive investment in infrastructure, transport and town centre improvements, which demonstrates confidence in the county, while excellent grammar schools draw families from afar.

When it comes to new homes, a volatile market will catch out the unwary but this is no bad thing: the ones that survive are normally the ones providing the market with what it wants, well-designed and well-built homes in attractive locations at affordable and competitive prices.

Although there is a lot of development, there is still a shortage of good quality property, which with the county's attributes, is likely to help maintain prices and momentum.

* Paul Hogarth is partner and head of new homes sales and marketing for Knight Frank in the South East. To contact his residential development team call 01483 564660.