York may not shout as loudly as some of the other vibrant cities in the north of England, but recent house price figures from the Land Registry reveal that it is York’s time to shine, with its housing market becoming a star performer in the region.
In terms of capital values, York is now one of the top performing areas in the north of the country, significantly outperforming some of the region’s most high profile cities. Between September 2007 to September 2016, covering the period from the market’s peak before the financial crash and its recovery, house prices in the city rose by 19.6%. This is more than double the rise of property values in many of the cities in the north, even those that are known for being strong performers such as Leeds.
The city’s growth is recent, with the majority having taken place in the two-year period to the first quarter of 2016. We have estimated that property values across the whole of York rose by around 10-15% in the 12 months to April 2016 alone.
Buoyed by new development and demand for Georgian housing stock, York’s average house price in September was £233,488 and, in the city centre, it is £247,406 – compared to an average of £236,376 for North Yorkshire.
Values for flats have performed well, with the average apartment selling for £249,183 in the 12 months to September. Approximately 50-60% of apartments acquired in York are sold to either investors or to affluent second home purchasers looking for a holiday home, helping to stimulate price growth and demand.
With its desirable period properties, it is no surprise that the majority of sales in York during the last year were of terraces, which sold for an average of £228,545. The highest priced property currently available for sale is also a terrace. Offered at £1,595,000, it is a five-bedroom, 3-storey house in The Purey Cust development, a conversion of the listed former Nuffield Hospital that was originally the Archbishop’s Palace.
The trend for building traditional homes in York continues, as developers convert existing property. For example, St Leonard’s Place by Rushbond, a high-quality conversion of a charming row of listed Georgian town houses built in the Regency style into 11 houses and 29 flats. Now virtually sold out, in excess of £600 per sq ft was achieved for one of the best positioned apartments, clearly demonstrating the demand for this type of home in the area.
New build homes and conversions are increasingly sought after, particularly those combining a contemporary specification with the heritage of a period building.
The Chocolate Works, an on-going development of the former Terry’s chocolate factory site by PJ Livesey, is an example of the growing demand for homes that blend the old with the new. Located in the south-side of York next to the racecourse, this landmark development in a listed former factory comprises 173 apartments.
Sales at the development have been very healthy. From the start of marketing in mid-April and to mid-October there have been over 100 reservations, a selling rate of 17 units per month at an average price of £400 per sq ft.
Newby is another developer that is making the most of York’s confectionary legacy with the conversion of the former Nestle factory on Haxby Road to the north of York city centre. The Cocoa Works, which is on a 16.75-acre site, is an exciting mix-use development that will include 275 new homes, over 100,000 sq ft of offices, 10,000 sq ft of retail space, student accommodation and a community centre, gym, crèche and café.
With its rich heritage and student population, demand for rental property in York has been very strong, particularly within the historic city walls where properties with views of York’s magnificent Minster command a significant premium.
Ben Hudson, from Hudson and Moody estate agents in York, notes that many of the newer retail developments within the centre are incorporating bars and restaurants, drawing renters and buyers to the city. The Botanist is taking space within the former Mulberry Hall building and a number of more bespoke restaurants are opening up along Micklegate, including Skosh, The Rattle Owl and The Partisan, making Micklegate one of the up-and-coming restaurant quarters of the city.
When the Rowntree family set up Rowntree’s in York over 150 years ago, they had a vision to create a better living and working environment for their employees and today the city continues to be a vibrant place to live and work.
Looking forward, the expansion of the University at Campus East and the planned regeneration of York Central, a 91-acre site behind the railway station known as the “teardrop”, will see York continue to flourish.
Notes to editor
Andrew was instrumental in setting up the Allsop LLP Leeds office which opened in May 2002.
He previously worked at Sanderson Weatherall and Chesterton (now BNP) and qualified whilst undertaking a breadth of commercial valuation and professional work. He has over 17 years post-qualified experience, with over 15 years’ experience valuing all types of residential assets.
Andrew has a diverse range of contacts in all the major lending institutions throughout the north of England. Consequently, a good proportion of his business activity is spent undertaking loan security valuation work; either of investment portfolios, residential development land, and student accommodation including HMO’s.
He has a wealth of experience in the residential market throughout the north of England, with particular expertise in the city centre apartment markets in all the major northern cities, including Leeds, Manchester, Liverpool and York.
The posts on this blog are provided ‘as is’ with no warranties and confer no rights. The opinions expressed are the author’s own and do not necessarily represent those of their employer.
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