YORK’S high housing costs make it a tough place to live for people on average incomes, according to new research by a former government economist.

Six weeks after The Sunday Times named York as the best place to live in Britain, an index compiled by researcher and economic consultant Chris Walker says the city is less “liveable” than surrounding areas - largely because high housing costs makes it the least affordable place in the North.

The city’s average wage is £26,700, the report says, and the employment rate is 76 per cent - both higher than in surrounding areas. However those relatively favourable facts do not make up for the high housing costs - with average house prices 9.7 times the average wage and average rent at £865 a month.

A spokesman for Your Housing Group, which commissioned the ‘Northern Powerhouse Liveability Index’, said York did not fare well in its index.

Your Housing CEO Brian Cronin added: “This significant new research reveals the hidden problem areas for average earners in towns and cities across the North of England. Importantly it also shows where we need to see the development of more genuinely affordable homes.”

The index takes into account housing costs, average earnings, the availability of housing and work, and school results. In its overall scores, York scores well on quality of life but poorly on affordability.

The surrounding districts of Ryedale, Selby, Harrogate, Hambleton, the East Riding, Leeds and Hull all rank higher than York in the overall index - with Scarborough coming in at eighth and Ryedale just behind in ninth place.

City of York’s council leader Cllr Ian Gillies said the city had work to do on affordable housing.

“York is a great place to live, and we are bringing forward the Local Plan which hopefully addresses some of the concerns regarding affordable housing - we know that’s an area we need to step up to the mark on,” he added.

Deputy leader Cllr Andrew Waller added that the council’s own One Planet York group has looked at ways of measuring whether the city is a good place to live and is reaching its full potential, and identifying areas that need work.

Making sure the Local Plan is adopted is crucial, he said, as it will ensure that York can set its own affordable housing targets to tackle that problem.

Senior councillors are due to agree next week to submit the draft Local Plan to the government for inspection - the last step before it can become formal policy for approving housing developments in the area. If the council misses a May 31 deadline, it runs the risk of central government taking over the process and imposing its plan on the city.