THE rise in house prices over the past year is a sure sign that confidence is returning to the housing market.

In York, property prices have risen by 3.8 per cent on a year ago. The average price of a house is now £182,929 – just five per cent below the property peak in 2007, and almost £13,000 above the England and Wales average of £170,000.

This confirms York as a boom city. The average house price in Yorkshire and the Humber as a whole is £117,000, while even in wealthy North Yorkshire it is only £170,495.

Estate agents say the surge in prices in York is down to a combination of the city’s good communications, good schools and good commuter links – tied to a shortage of high quality property.

And there’s the rub. While many property owners in York may be pleased to see the value of their homes rising, it does bring problems.

There is already an acute shortage of affordable property in York. With house prices rising as fast as they are, there will be many younger people in York who see their dream of one day owning their own home seeming to get further and further away.