New research launched by Savills this week reveals that property price growth in York has significantly outperformed the rest of Yorkshire and the north of England since the credit crunch, and buyers from outside the region are moving to the area from all over the UK.
In the prime housing markets, average values are now 13.4 per cent above their 2007 peak, compared to values of -18.8% below this level on average as you move outside York to the surrounding villages and countryside.
Sophie Chick from Savills residential research team said: “The strong growth in York city centre highlights a continuing trend seen across the UK. Attractive towns and cities that are well connected, have a core of good quality family housing and a choice of high performing schools have become the focus of a widening profile of affluent buyers. York ticks all these boxes and more.
“Buyers moving from the capital still play an important role as we see the ripple effect continue. In some cases, the London commuter belt reaches as far as York, with 24 per cent of buyers of prime property in York and 7% of buyers in the surrounding villages working in London, although often just three days a week. This comes as buyers recognise the very large value advantage.”
In the 15 months to March 2016, the average sale price across York, which includes the city but stretches from Strensall in the north to Copmanthorpe in the south, was £243,000*. This is 43% higher than the regional average of £170,000 for Yorkshire and the Humber.
The most expensive areas are the wards of Derwent to the east of the city, which covers the village of Dunnington, and Rural West York, containing Upper Nether Poppleton, which saw average sale prices of £322,000 and £312,000 respectively.
Across North Yorkshire, the average sale price was £217,000. High value locations include Harrogate and the Howardian Hills, the latter of which had an average sale price of just under £360,000, two thirds higher than the county average. On the coast, the highest value village is Scalby, which had an average sale price of £238,000.
Ben Pridden, head of residential at Savills York, said: “It is extraordinary how resilient the prime York market has been, particularly the growth in property values which have significantly outperformed prime villages surrounding the city. It is incredibly encouraging however, to finally see signs that the price gap between country and city is beginning to close.”
Sophie added: “Prime property values across the north of England are forecast to rise by an average of 18.2 per cent over the five years to 2020, as the local economies strengthen and buyers become more aware of the comparative value this region offers.”