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Kent homeowners up to £1.1m better off than renters, says study

Kent's renters could be up to £1.1m better off over 25 years if they bought their home instead, according to an analysis of official figures.

The data, based on information taken from bodies like the Land Registry, Government Valuation Office Agency and the Bank of England, shows the growing divide between homeowners and renters across the county.

According to the report, pulled together by housebuilder Countryside Properties, residents in Sevenoaks could increase their wealth by £1.1m over a quarter of a century by buying their home instead of renting.

How much property owners will increase their wealth across Kent, according to Countryside Properties
How much property owners will increase their wealth across Kent, according to Countryside Properties

This is closely followed by Tunbridge Wells, where homeowners could be £900,000 better off than renters.

Buyers in Dartford stand to gain £770,000, or more than £600,000 in Medway, and £745,000 in Gravesham.

Dover was revealed as the place where taking out a mortgage provides the least financial benefit, although it would still make people £538,000 richer over 25 years.

The issue is creating a "property gulf" in Kent, according to Iain McPherson, managing director of new homes and communities south at Countryside.

Countryside managing director of new homes and communities south Iain McPherson
Countryside managing director of new homes and communities south Iain McPherson

He said: "Even using conservative assumptions on house growth, in most areas the buying is a smart money move.

"Understandably, a stumbling block for some tenants is saving up for the deposit.

"But, with stamp duty relief and help-to-buy available, this has made buying a home far easier for first- time-buyers."

The figures were calculated by comparing the lifetime gain or loss of someone renting a property in Kent's 13 local authorities, to that of someone buying an average home in the same districts.

Renters in Kent could be up to £1.1m wealthier over 25 years if they bought their property
Renters in Kent could be up to £1.1m wealthier over 25 years if they bought their property

Average rents were taken from the Government's Valuation Office Agency, and researchers calculated how much they are likely to increase in line with projected house price rises.

Current house prices, according to the Land Registry, were also used, with potential rises calculated using projections from the Office of Budgetary Responsibility.

Running and transactional costs were not included, but current rates of purchase stamp duty were factored in.

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