Housing crisis fears as ancient city lures young professionals

A new strategy to combat the soaring need for accommodation in York is due to be approved by politicians in the city in the hope of triggering major house-building programmes to satiate demand.

York was named as the UK’s second-fastest growing city after Milton Keynes last year and its population has now broken the 200,000 mark.

The city’s population has increased by nine per cent since 2001, with a more pronounced growth in people aged from 20 to 35 years compared to the rest of North Yorkshire.

Research has shown the increase is linked to a growing number of young professionals keen to take advantage of the high quality of living in York as the city’s economy shifts towards new industries.

The rise has also been attributed to a boom in student numbers due to York University’s ongoing £750m expansion, with many graduates staying on in the city.

A key document called the Strategic Housing Market Assessment (SHMA), which will shape planning policies throughout the next five years, is due to be approved by councillors on Tuesday next week.

The study has identified an annual need for 790 extra affordable homes in York to cope with demand over the next five years.

York Council’s cabinet member for city strategy, Coun Dave Merrett, said: “This is an important new piece of up-to-date evidence showing continuing high levels of affordable housing need in York and North Yorkshire, despite the Government’s tightening of the definition of need.

“It shows how important it is to get house building, with appropriate levels of affordable provision, going again.”

A study was commissioned by the York and North Yorkshire Strategic Housing Partnership in September 2010 to provide a detailed picture in the areas covered by eight North Yorkshire councils.

A total of 16,000 households completed a survey which was used alongside other data to compile the study.

The demographic profile shows York is unique in North Yorkshire in having projected growth in all age groups compared to other local authorities, which are expected to see a reduction in working age populations.

There is anticipated to be a lower rise in the over-60s population in York compared to elsewhere in North Yorkshire.

The arrival of the city’s fresh entrepreneurial spirit is linked to the growing importance of the science and technology sector, following a series of major job losses in manufacturing, which had been a mainstay of York’s employment.

More than 35,000 workers are employed across science and technology-related sectors in North Yorkshire, and almost 30 per cent more work in creative industries than in agriculture.

However, the SHMA study has also predicted a dramatic 87 per cent increase in the over-85s between 2008 and 2026, accounting for the vast majority of single person households.

Latest figures from the National Housing Federation have shown the huge disparities between incomes and house prices in York.

The city remains one of the region’s most desirable locations, with the average home costing £202,823, while the average wage is just £19,812.

If the council’s Local Development Framework Group approves the SHMA next week, the report will go to the cabinet before it is adopted.