York’s economy in ‘great shape’
A MAJOR economic study has revealed that York has left the recession in ‘great shape’ and is set for a bright future.
The York Focus report – authored by property consultancy Drivers Jonas Deloitte – has revealed that the city’s economy declined at only half the national average rate during 2009.
Unemployment in the city was 6% last year compared to a national average of 7.4% and an even greater regional rate of 8.2%, the report found.
The York Focus report said that capital retail growth – a measure of retail property values – increased by 7.2% by the end of 2009 where nationally, and also 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.
Drivers Jonas Deloitte said the city’s attractiveness as a place to live coupled with a healthy buy-to-let market supported by two growing universities had helped York buck regional and national trends.
In the city’s office sector, the York Focus report found that headline rents had fallen by 50p to £14.50 sq ft last year while vacancy rates increased to around 12%.
Drivers Jonas Deloitte also believes that the outlook for future growth in the city remains positive.
In particular, the report 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.
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.”
