What makes a place a happy one to live depends on many things – beautiful architecture, open green spaces, jobs, amenities and a stable property market no doubt help. What makes it a happy place to be in the property industry is more down to supply and demand.
For the past three years, Harrogate has been named the happiest place to live, with York close behind. Safety, pride, upkeep and overall quality of life are cited as reasons for both being so high in the annual Rightmove survey. With their historic centres, Georgian and Regency architecture, beautiful countryside and good infrastructure, it is easy to see why the cities do so well – as do their residential markets.
Over the past three years, York in particular has seen an influx of affluent buyers thanks in part to developers providing appropriate stock.
St Leonard’s Place is an example. Once home to York’s well-heeled residents, the crescent was turned into council offices but is now in the process of being converted back to housing.
Though not due for completion until the summer, 60% of the 40 homes have been sold off-plan. Prices range from £300,000 for an apartment to £1.58m for a townhouse in the crescent.
Mark Finch of Rushbond says: “Demand is outstripping supply for homes. As more people understand the attractions of the city, demand is rising.”
Finch says buyers are a diverse mix of York-based businesspeople, young professionals, retirees downsizing and Londoners relocating for a better quality of life.
According to Ben Pridden, head of residential at Savills’ York office, one in 10 of their buyers still works full-time in London, while around a quarter of all buyers are either from London or abroad, typically expatriates.
“There seems to be a flight to city living [from the surrounding countryside],” he says, adding that prices have risen to 10% above 2007 values. Top-end houses in York now command between £250 and £400 per sq ft.
The £38m redevelopment of the former Terry’s chocolate factory is another example of prime residential development in York. The PJ Livesey Group is turning the Grade II listed building into 170 homes, ranging in price from £185,000 to £4.5m.
It is happy times for the residential market, but not so much for those seeking or leasing offices. Supply is shrinking in part owing to permitted development rights. Matthew Tootell, offices director for Bilfinger GVA, says office rents are £16 per sq ft for refurbs and £20 per sq ft for new-build.
“All the opportunities have disappeared because developers want to turn it into residential,” he says.
Jonathan Shires, senior director north east office, CBRE, agrees. He says: “It’s not a buoyant marketplace for office developments. It’s tricky. The city centre is constrained due to the city walls.”
York City Council is hoping to bring forward the 86-acre York Central site for development, which could accommodate 1,000 residential units as well as 1m sq ft of commercial space.
Shires says: “There’s a lot of work that needs to be done before it’s workable. It could be another King’s Cross but it’ll take another five years before there are bums on seats.”
