York tops Britain's urban prosperity index outside London, but residents voice affordability concerns

York has been named the most prosperous city in Britain outside London in a study by Demos and PwC, with unemployment at 1.6 percent, well below the national average of 3.8 percent. Average annual salaries in York are about £41,400, above the UK average of £37,430. The city has benefited from a buoyant tourism sector, a well-skilled workforce and strong transport links that support its thriving high streets. Tourism spending in 2024 topped more than £2 billion, up 5 percent from the year before, while the city recorded 1.7 million overnight stays and 9.4 million annual visitors.

York rose to the top of a ranking of Britain's 50 biggest cities outside London compiled by Demos and PwC. The study used metrics including crime rates, house prices, earnings, quality of life and schooling, and found York to be the most improved top-ten location since 2021. York is also home to two universities and Nestle, among the major employers, and a new government hub is set to house 2,000 civil servants. The council has signaled plans to monetize this strength with a European-style tourist tax on hotel stays, arguing the funds would help maintain the city and preserve its historic attractions.

Behind the numbers, residents describe a mixed reality. Shane Sayner, 47, a cleaner and lifelong York resident, told our reporter that life in the city still feels tough. 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. He noted that many properties are Airbnb or student accommodation because the council has prioritized tourists and students over local residents, and he cited potholes and traffic as ongoing issues. First-time buyers in York paid £270,000 on average in July 2025, about £50,000 more than the British norm. Renting a detached home costs about £1,467 a month, according to ONS data. Sayner said that while prosperity is real on paper, it isn’t felt by many locals who work in everyday jobs.

Penny Forster, a retired teacher, said it’s all about tourist money. We feel a bit like second-class citizens. It costs so much to visit the museums and galleries. When you live here, it’s very expensive. She added that York remains a good place to live but would benefit from more police and greater appreciation that residents are not just visitors.

Tracey Hindmarch, 57, described parking costs as a major friction point. There are a three-hour stays now costing £9, and in May the council raised an hour’s stay from 80p to £4.85 before compromising at £3 after a public backlash. She said there are also concerns about overall parking costs and accessibility. City centre parking can be costly, though a Park and Ride and local discounts for residents with a Minster Badge provide some relief.

Sophia Cheng, 38, who is moving with her partner and two-year-old into a housing co-operative on York’s Lowfield Green, said the homes are leased at around 70 percent of market value and can only be sold back at the same percentage rate. The two-bedroom eco home is about £196,000, and residents sign up to share cars and childcare. I think York feels prosperous and I love living here. It’s got great schools, job opportunities and a lively cultural scene. That means that rental prices are really high as residents compete with a vast number of holiday lets and Airbnbs. There are at least four on our small street. The co-op is a practical response to the housing shortage.

Dawn Wood, 62, who runs Fabrication Crafts on Stonegate, was upbeat about the city. York recovered much better from Covid thanks to the tourist trade and there are plenty of city-wide events, including residents’ festivals, and attractions are cheaper or free for locals. Still, she noted that accessibility remains a challenge in older buildings and that the Christmas market can deter year-round locals from shopping on certain streets. She said, however, that overall, York has many reasons to celebrate its status.

Andrew Carter, of the Centre for Cities, said York is the city with the biggest visitor economy relative to its size and is the only place where total visitor spending in the city centre exceeds total residential spending. He stressed that places like York, where visitors make a outsized contribution to local economies, are the exception rather than the rule among the UK’s towns and cities.

York tops a list of Britain's 50 biggest towns and cities outside London, with Edinburgh and Bristol second and third, followed by Exeter, Swindon, Plymouth, Southampton, Reading, Portsmouth and Norwich. The rankings reflect a mix of metrics, and York’s high placement highlights the city’s reliance on tourism alongside stronger wages and employment. Analysts say the city still faces questions about affordability and living standards for non-tourist residents as it continues to pursue growth strategies that preserve its historic character and quality of life in a competitive national landscape.