York tops Britain's urban growth index outside London as residents face housing squeeze

York has been named Britain’s most prosperous city outside London in a national index that ranks the 50 biggest towns and cities by growth indicators, beating Manchester, Edinburgh and Bristol. The study by Demos and PwC highlighted York’s low unemployment, strong wages and a buoyant visitor economy as drivers of its ascent. Unemployment in York sits at 1.6 percent, well below the national average of 3.8 percent, while average annual salaries in the city are about £41,400, above the UK average of £37,430. The city’s transport links and vibrant shopping streets were also cited as factors underpinning the rise. Tourism is a key pillar: more than £2 billion was spent in York by visitors in 2024, a 5 percent rise from 2023. Overnight stays reached 1.7 million in 2024, with 9.4 million annual visitors.

Yet the glittering metrics mask a more mixed reality for many residents. Prices for homes in York have climbed sharply: the average dwelling now costs about £324,940, while first-time buyers in July 2025 paid around £270,000 on average—roughly £50,000 more than the British norm. Renting a detached home costs about £1,467 a month, according to official figures. Local people describe a widening affordability gap as tourism and student demand push up prices and shift city life toward a tourist economy.

Some residents say prosperity metrics fail to reflect everyday pressures. Shane Sayner, a cleaner and lifelong York resident, said, "Don't make me laugh. My bills have gone through the roof and plenty of locals can't afford to buy or rent because the prices have gone through the roof. People with ordinary jobs like me don't have wages that can stretch that far."

Others argue the city’s popularity comes with costs that disproportionately affect long-term residents. Penny Forster, a retired teacher, noted, "We feel a bit like second-class citizens. It costs so much to visit the museums and galleries, and when you live here, it’s very expensive." Local shopkeepers described parking and commuter issues as barriers to daily life, with roadworks and traffic congestion compounding frustrations beyond the tourist season.

In response to growing affordability concerns, York’s council has signaled plans to monetize the visitor economy further, including a proposed European-style tourist tax that would add a nightly charge to hotel rooms. Proponents say the funds would help maintain the city’s historic attractions and essential services, while critics warn the levy would burden residents and small businesses already squeezed by rising costs.

Beyond housing and tourism, York’s economic profile rests on durable assets. The city hosts two universities, a major employer in Nestlé, and a government hub announced to house about 2,000 civil servants. Supporters say the combination of educational institutions, major employers and the transport network underpins long-term prosperity and resilience, helping to diversify the economy beyond tourism. Andrew Carter of the Centre for Cities noted that York is distinctive in its reliance on visitors to sustain the local economy, a dynamic that sets it apart from other large towns and cities.

York’s ranking positions Edinburgh second and Bristol third, followed by Exeter, Swindon, Plymouth, Southampton, Reading, Portsmouth and Norwich in the top 10. The methodology considers a broad mix of indicators—crime, earnings, quality of life and schooling—alongside the size of the tourism economy, to assess prosperity across Britain’s major urban centers outside London.