Bright future ahead for resilient York

The York Focus report, authored by property consultancy Drivers Jonas Deloitte, revealed that its economy fell by 2.8 per cent compared to 4.6 per cent across the UK.

Unemployment in the city was six per cent last year compared to a national average of 7.4 per cent and an even greater regional rate of 8.2 per cent.

The York Focus report says that capital retail growth – a measure of retail property values – increased by 7.2 per cent by the end of the year where nationally, and in Leeds, the figure fell.

York's house prices also managed to avoid the steep decline in values seen in other areas with levels remaining above the national average (178,852; 126,898 regional).

Drivers Jonas Deloitte says that the city's attractiveness as a place to live coupled with a healthy buy-to-let market supported by two growing universities has helped York buck regional and national trends.

In the city's office sector, the report found that headline rents had fallen by 50p to 14.50 per sq ft last year while vacancy rates increased to around 12 per cent.

Overall, it found that a good quality of life for residents as well as a highly skilled workforce has helped the city to outperform other regional centres.

Drivers Jonas Deloitte also believes that the outlook for future growth remains extremely positive with a number of development opportunities on the horizon.

In particular, it highlights the 165m redevelopment of the former Terry's Chocolate Factory site by Grantside, plans to expand the Monks Cross out-of-town business park and the potential regeneration site behind the railway station, known as York Central.

Meanwhile, Drivers Jonas Deloitte says that residential development has continued apace with 50 new units currently under construction and major new schemes – such as Hungate – almost entirely sold out.

It warns that the city's ability to unlock this potential will depend upon the delivery of new infrastructure to open up strategic development sites as well as strong leadership from the council.

Alex McCallion, assistant director from Drivers Jonas Deloitte in Leeds, said: "Like many of Yorkshire's towns and cities over the last decade, York has successfully shifted the focus of its economy away from manufacturing and industry.

"The city has significantly grown its public, financial and business services sectors while continuing to make the most of its heritage assets to maintain a thriving tourism sector.

"Even before the recession, York had proved its resilience after sustaining significant job losses in 2005 and 2006 following the closure of the Terry's Chocolate Factory and the British Sugar Refinery Plant.

"Greater economic cooperation with its neighbours within the Leeds city region, a growing higher education sector and Science Park as well as a number of very attractive development opportunities means the future is undoubtedly bright for one of England's most historic cities."