YORK has been highlighted as being home to one of the best performing property markets in the North of England.

A reported soaring demand for a limited supply of prime property has seen city centre values raise 8.2 per cent above their previous peak in 2007, according to new research.

The Prime Yorkshire report, by international real estate advisors Savills, also revealed that 17 per cent of York’s buyers were relocating to the region from London, with the trend on an upward spiral.

Yorkshire property company Rushbond has welcomed the news after recently securing planning permission to restore St Leonard’s Place in York.

The Grade II listed building, formerly home to City of York Council’s offices, together with the adjoining Grade II listed properties in Museum Street, will be converted into five townhouses and 29 flats, with a mix of six conversion and new build mews properties at the rear.

Mark Finch, director of Real Estate at Rushbond, said: “This research demonstrates how the world-class attractions of York make it a great place to live, work and visit, and how there is another exciting opportunity for the city centre economy as demand grows for high quality homes.”

Tanya Coffey, residential agent at Savills in York, added: “The gap between house prices in prime London and prime Yorkshire is now at an all time high and it comes as no surprise that growing numbers of buyers are heading to the region from London.

“However, in York city centre, a key source of demand is also coming from downsizers, often moving from London or the countryside. York also offers incredible train links to London, Leeds and Edinburgh.”

Ms Coffey said the number of buyers registering with Savills across the region had increased 29.9 per cent, with viewings up by 13.4 per cent on 2013.