HOUSE prices in the county are set to surge ahead of national levels in the coming years, according to the boss of a local housebuilder.

After announcing a rise in turnover and profit, David Holliday, chairman of Chatham-based Ward Holdings, parent company of Ward Homes, said the future looked good.

"Kent and Medway are going to be growth areas and as transport links improve, house prices will probably run ahead in percentage terms of the national average," he said. "The opportunities for regeneration are really substantial."

Mr Holliday, who led a management buyout of the company in 2000, said the average price of a new Wards home had gone up by £8,000 to £209,000.

But it remained hard obtaining land to meet growing demand from the increasing number of households, and public sector workers seeking affordable homes.

The company had linked with Hyde Housing Association to build more affordable apartments but he accepted they would not be enough to satisfy demand.

"There is a shortfall and that is one of the reasons why house prices have been going up. Demand is exceeding supply."

He forecast house prices would continue to rise by up to 10 per cent in the next 12 months. On freeing up brownfield sites for housing, as the Government wants, Mr Holliday said that local councils did not always see things the same way.

It was hard to get planning permission, taking up to 12 months. "It's very difficult to plan your business, to recruit extra people and retain existing people."

He added: "Whilst the Government has set out the policy, when it comes down to local issues, there are a lot of things that people are concerned about, so there's a long debating period about what is right for any site."

Wards turnover went up from £71.9 million to £77.9 million in the year to October 31, and pre-tax profits from £11.8m to £13.9m.

The company sold 353 homes in the year, 262 of them in Kent, including developments in Maidstone, Ashford, Canterbury city centre and Iwade.

Ward Holdings also owns the Anvil Plant Hire company.