York: Why demand is soaring and what is being done to tackle the housing shortage

For years, the demand for property has far outstripped supply, causing prices to soar and leaving would-be residents frustrated.

"York as a city just continues to go from strength to strength,” says Edward Hartshorne, managing director of Blenkin & Co, inset. “But often there isn’t the supply of good houses to meet the demand.”

However, change is on the horizon. North Yorkshire Council has been given an annual housebuilding target of 4,077 houses from the Government, more than triple the previous figure and the city is embarking on a series of ambitious regeneration and expansion projects, which will transform its landscape on a scale not seen for centuries.

York Central is one of the most ambitious schemes in Britain. The 45-hectare mixed-use development site will bring to life brownfield land to create much-needed residential neighbourhoods, cultural space and commercial premises.

The Helmsley Group is revamping York’s historic Coney Street, opening up access to the River Ouse and there are plans for affordable housing on New Lane in the Huntington area.

Meanwhile, Taylor Wimpey intends to build a new garden village of up to 380 homes on land between Stockton Lane and Bad Bargain Lane, east of Heworth.

In a historic move, York’s Local Plan has also been updated for the first time in 70 years. This pivotal plan, backed by city councillors, will provide a framework for future housebuilding, setting the stage for York’s growth in the coming decades.

“There’s a lot going on and, from a property perspective, it’s what the city has been screaming out for for a long time,” says Oliver Newby, managing partner of Stephensons Estate Agents in York.

“I do worry about the more affordable homes. If you look at some of the sites being built, there are some fabulous properties but I don’t think they’re servicing the needs of younger, first-time buyers.

“We could really do with a number of central sites that can supply two bedroom townhouses and semi detached houses under £300,000. But sadly, because of the price of land, those sorts of sites just don’t work for a lot of developers.”

The average house price in York over the last year was £323,396.

The majority of properties were terrace properties, selling for an average price of £317,660. Semi-detached properties sold for an average of £320,573, with flats fetching £210,776.

Louise Hirst, director at Prime Residential, says: “Buyers are cautious and indecisive, but will commit to the right property with some still achieving over asking price.

“They prefer properties with little to no work and are shying away from projects. Time, effort and cost are the barriers.”

York’s main attraction for housebuyers, according to the city’s estate agents is the railway station, with the fastest train to London taking less than two hours. Add in some of the top schools in the country – including St Peter's and Bootham – and it’s no wonder there is competition for homes in the city.

Nearly 50 per cent of homes sold by Blenkin & Co, since the start of the year were off market deals. “It’s a really interesting sign of how buoyant the market is because people are registering with agents and buying properties before they hit Rightmove,” says Edward.

The demographic is widespread and appears to be getting younger. “Traditionally York would be the downsizers, so perhaps people in their sixties and seventies,” says Edward. “I would say the current demographic is thirties to forties mainly. But York is wonderful because it’s got a mixture of stock and everybody’s got a different reason to move here.”

He adds: “I would say a third of the market is from Yorkshire, a third from London and the Home Counties and a third international. We are seeing a huge increase in international buyers from places like Dubai, Abu Dhabi, Singapore and Hong Kong. I recently sold a country house to a lawyer from Singapore.”

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Toby Cockroft, owner of Croft Residential, agrees. "We have sold two houses this year at circa £2m off market to buyers relocating back from overseas who need to be able access London easily,” he says.

"The secret sauce for very popular buys is the ability to walk to the station and schools, be able to park and have some outside garden. Throw in five beds and a big kitchen and you have cracked it.”

Areas like Bootham and Clifton are strong markets along with The Mount, Tadcaster Road and the Knavesmire. Villages and towns on the outskirts, such as Poppleton, Skelton and Haxby are also popular.

"The London buyers seem to be appearing in droves still and those villages on the A64 corridor, like Askham Bryan, Askham Richard and Colton are eternally popular,” says Edward.

He adds: “York has always punched above its weight because it’s a beautiful place to live.”