Houses earn more than owners in nearly half of Kent

Homes earned more than their owners in almost half of Kent’s districts over the last two years, according to new research.

Average house prices increased by more than the average employee’s net earnings in six of the county’s 13 local authorities, says a study by Halifax.

Workers in Dartford saw homes gain £61,327 in value between 2013 and 2015, while the typical person was paid £46,719 over the same period.

The Lyons fraudulently pocketed money from the sale of houses
The Lyons fraudulently pocketed money from the sale of houses

It means houses in the district earned £14,608 more than the average worker, which was the largest difference in the county.

This was closely followed by Gravesham, where property values grew by £58,021, compared with wages of £44,748, a difference of £13,272.

Kevin Dennett, branch manager at Mann Countrywide estate agency in Dartford, said: “About 80% of our buyers come from London.

“We are getting first-time buyers buying £350,000 properties because they live in Lewisham and think it’s amazing value for just a 30-minute train journey away.

“Each house is attracting at least 30 buyers because there is a complete lack of supply and demand is through the roof.

Houses earned more than their owners in five Kent districts
Houses earned more than their owners in five Kent districts

“People who live in Dartford can’t afford it and they are moving to Maidstone because they think it’s cheaper. It is having a knock-on effect across the county.”

However, house prices in Kent grew by a fraction compared with some other areas of the UK.

“Each house is attracting at least 30 buyers because there is a complete lack of supply and demand is through the roof..." - Kevin Dennett, Mann Countrywide

The research showed that one in four homes across the country earned more than their owners, with houses in Three Rivers, Hertfordshire, earning almost £100,000 more over two years.

The weakest average house price growth in Kent was in Dover, where properties increased in value by £10,942, while its residents earned £43,982, the largest swing the other way at £33,040.

Martin Ellis, housing economist at Halifax, said: “The housing market recovery over the last few years has led to substantial price rises in some areas of the country, particularly in London, the South East and the East of England.

“This has resulted in homes increasing in value by more than total take-home earnings for the average homeowner in many areas of the country.

“Clearly, this is good news for some homeowners. However, it does make conditions tougher for those looking to buy their first home in such areas, with prices being pushed increasingly out of range for many young people.”

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