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Some Kent homeowners earning less than their property's value is going up

Some homes in Kent are earning more than their owners, it has been revealed.

Figures released by Halifax show houses in some parts of the county increased in value by tens of thousands of pounds when comparing prices in 2015 and 2017.

This means they have accrued more value than the median average wages of the people living in them during the same period.

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House prices are increasing at a higher rate than some wages are going up in many areas around the county. Picture: Thinkstock
House prices are increasing at a higher rate than some wages are going up in many areas around the county. Picture: Thinkstock

The median rate is calculated by ranking all homes in order of value and taking the figure for the house price in the middle.

Halifax then looked at the net median earnings for 2016 and 2017 and compared them against the difference in average house prices in the area for 2015 and 2017.

Canterbury had the biggest gap of rises in property values exceeding average take-home earnings with houses earning an average of £28,345 more than their occupants.

Gravesham followed with a £17,777 gap, followed by Sevenoaks with £16,974 and Thanet with a disparity of £16,781.

People in Dover had a void of £7,935, Swale £3,230, Maidstone £2,241 and Dartford £635.

For four other areas it was a different story as the average earnings for the people living there were higher than the increase in property values.

Medway had a split of -£3,098, Ashford -£11,392, Tonbridge and Malling residents earned £21,077 more than their properties and Tunbridge Wells residents saw a gap of £22,532 emerge.

Figures were not available for the Folkestone and Hythe borough.

Managing director of Dockside Property Services, Spencer Fortag, said he was not surprised by the figures.

"What's interesting here is, why I consider some of the houses going up more than salaries," he said.

"That's because, I think, when it comes to people deciding whether to move up or down the property ladder, lots of people are actually deciding to stay put and they're electing to improve their own property.

"Be it a loft extension, a new kitchen or a garden room.

"This has two affects on the property market, firstly that house that would ordinarily be sold isn't going on the market, but also the value of that property is going up.

"I believe this is good news for homeowners because high prices generally lead to a higher rate of consumer confidence."

Managing director at Halifax, Russell Galley, said: "Over the past two years, we have seen house price growth and earnings converge at a national level, leading to a drop in the total number of areas where the average house price rise is greater than owners’ take-home earnings.

"Despite the slowdown in house price growth in southern England, it has still outpaced wages across most of the region.

"This means that middle earners are also facing a challenge getting on to the property ladder."

Nationally, the average UK house price increase of £78,400 over the past five years has been greater than the earnings in three employment sectors over the same period.

Since 2013, annual median earnings for those working in the caring and leisure services have outpaced average house price growth by £3,718.

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