Out of 11 Yorkshire towns and cities York has the fifth highest shop rents, it was revealed today.

Shop tenants in the city pay an average of £185 per square foot - £60 more than seven years ago in 1997 - and rents are still rising.

One of the reasons for the big York increase, outlined in a new report by property advisers Collier CRE, is the redevelopment on the corner of Spurriergate and High Ousegate.

According to Tom Cullen, associate director at Colliers CRE responsible for retail in Yorkshire, the redevelopment "has brought about interest from the national retailers which has pushed Zone A rents in the city centre up".

But the report has prompted a warning from Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, that care should be taken to ensure that the city has affordable rents for small independent shopkeepers.

He said: "This report reinforces what we already know - that York has a strong retail offering, but if we can't accommodate those retailers who give the city its diversity we could damage our retail economy. If we affect any elements of the city's mix of heritage environment, diverse independents and High Street branches we threaten the city's shopping experience."

The research also shows that shop rents in Yorkshire as a whole are among the highest in Britain, second only to London and the south-east. Between May 2003 and May 2004 prime in-town retail rents increased, on average, by 4.4 per cent, well above the UK average of 3.1 per cent.

This compares with rental growth the year before of 2.4 per cent, when Yorkshire was seventh in the national league.

Highest retail rent in Yorkshire is Meadowhall in Sheffield, where tenant shopkeepers pay £400 per square foot, followed by Leeds at £270 per sq ft, the White Rose shopping centre at £265, Sheffield at £205 and then York at £185. Harrogate is ninth at £125 per sq ft.

Updated: 12:47 Friday, October 15, 2004