Kent is riding the wave of the national economic recovery thanks to growth in high value sectors and the availability of financial support packages, according to the 2014 edition of the Kent Property Market Report.
The announcement of significant infrastructure projects such as the development of the Ebbsfleet Garden City, the Government’s commitment to a third Thames Crossing and the further development of High Speed Rail services, have added to the sense that the county is at the forefront of growth in the country, the report finds.
The report, which is compiled by Kent County Council, Locate in Kent and Caxtons Chartered Surveyors, was launched on October 15 at Eastgate, Northfleet, at the heart of some of the Thames Gateway’s key regeneration zones, including Ebbsfleet and the Swanscombe Peninsula, site of proposals for a 900 acre entertainment complex, licensed by Paramount Pictures.
It finds the county’s business parks have seen continued take up in the last 12 months with rental levels exceeding those of the previous year in many cases.
Crossways at Dartford was home to a successful speculative development with the pre-letting and letting of the majority of the 1,043 sq m Corinthian House, while Kings Hill continued to perform well with some key lettings.
Industrial space continues to be one of Kent’s strongest suites, with rental growth at 1%, outperforming the rest of the South East and the UK. Lack of availability within certain size ranges in the county has seen the return of speculative build in this sector as well.
Although figures show negative rental growth in Kent’s office sector for the year, the decline is narrowing, and some locations close to the M25 have seen rental growth. Speculative development has returned to the county with one such project, Hermitage Court near Maidstone, fully let.
Permitted Development Rights have led to a reduction in the amount of redundant and obsolete offices in the county.
Warehouse rents continued to fall at a faster rate than the South East and UK averages, but yields continued to harden, reflecting increasing investor appetite in UK property.
Ron Roser, chairman of Caxtons, main sponsor of, and contributor to the report, said he was delighted and impressed with the outcome of this year’s research.
“On the back of the return to growth in the UK property sector, Kent, along with the rest of the South East, is benefitting,” he said.
“New local and central government initiatives have helped to bolster activity, especially with inward investment into the county. Approved developments at Ebbsfleet and Swanscome will ensure sustained sector employment in the area for some time to come and show a massive improvement on the position we were facing 12 months ago.
“Confidence has returned across the county whether in the commercial or residential field. This year’s report shows that Kent’s property sector is gaining traction in a strong economy and is determined to maximise opportunities. A welcome return from the darker days of recession.”
The report also identifies significant economic development across Kent and Medway, including:
A sharp increase in development across the Thames Gateway, including new homes at Eastern Quarry and approval for redevelopment programmes in Lowfield Street, Dartford and Gravesend’s Heritage Quarter, as well as work starting on the Chatham Waters project;
The appointment of a development partner for the Swale Council’s regeneration of Sittingbourne town centre;
The opening of the Kent Institute of Medicine & Surgery, the construction of a new Next Home & Fashion store and the publication of a masterplan for an extended Mall shopping centre in Maidstone;
The start of the developments at Knights Wood and Royal Wells Park in Tunbridge Wells, along with the go ahead for the dualling of the A21 between the town and Tonbridge;
The success of Expansion East Kent funding helping new and existing companies in Thanet to grow and create jobs, notably at Discovery Park, Sandwich.
Paul Wookey, Chief Executive of Locate in Kent, the county’s investment promotion agency, said: “Regeneration in Kent and Medway is growing apace, which makes the county an attractive proposition for companies looking to move or grow here.
“The report highlights that we have an enviable range of space across all business sectors, including excellent facilities for hi-tech and life science companies, with more in the pipeline, and some key infrastructure projects being planned and delivered.”
In 2013/14, his agency helped 56 companies set up in, move to or expand in Kent, creating 1,398 jobs and retaining 817. This included 17 overseas companies with six from the US, three from Italy and others from Ireland, Switzerland, Canada, the Netherlands and Australia.
In the first quarter of 2014/15, a further 16 companies received assistance from Locate in Kent.
The Kent Property Market Report is also supported by Maidstone-based DHA Planning, Lloyds, RICS South East, and Kent law firm Cripps.
