LOW wages and high house prices are combining to make life in York harder and harder, a new report has warned.

City councillors will this week be told that although people in York earn more than the Yorkshire average, the city still lags a long way behind the rest of the UK.

The report says York is underperforming, given its highly-educated workforce, good position on the rail network, and very low unemployment rates.

The city council's Labour group leader Janet Looker said the figures showed a worrying trend for workers in York.

While average wages are continuing to rise, they are increasing at a slower rate than the rest of Yorkshire meaning the city could be "overtaken".

Cllr Looker said: "The issue that concerns me is when you look at earnings data and compare it with the cost of housing, the two graphs are going in different directions.

"Our earnings are not going up as fast as we would want, but housing costs - even in rented housing - are going up faster than we would like.

"The two issues are going in different directions but neither in the right way for people who want to live in York on reasonable incomes."

Developments like York Central should help by increasing office space for new employers, but are still a number of years off, she added.

The data shows that in 2016, average wages in York were £505.40 a month - less than the £540.20 average for the whole of Great Britain, but higher than the Yorkshire regional average of £498.30.

York Press:

The data also shows the Yorkshire figure going up by 2.49 per cent a year and the national one by 2.21 per cent, but York's by only 2.18 per cent.

Despite this, council deputy leader Keith Aspden said York was "catching up" with national earnings with the gap shrinking between 2014 and last year.

He said the report showed a lot to be pleased with for York, even though there was clearly "room for improvement" in things like promoting high-value jobs and the council administration was working on ways to improve the situation.

Cllr Aspden added: "Last summer I was pleased to launch a new Economic Strategy for York, which sets out how we can build on the strengths in our economy.

"This includes delivery of the York Central site, securing investment in our key transport networks, and delivering a Local Plan that offers room to grow while protecting our city's historic character.

"I look forward to continuing work with partners as we meet our goals, such as by supporting Jobs Fairs and working closely with local businesses to create a Business Friendly Council."