All great cities undergo a period of decline during their history and York's occurred during Tudor times.

This was when the wool industry became less important to York, trade drifted towards London and, in 1533, Henry VIII broke with Rome and set himself up as head of the church in England; York as an established religious centre suffered greatly. The Dissolution of the Monasteries began in 1536 and York lost its abbey, priories, friaries and great religious hospitals. Their sacred treasures were stolen or destroyed and, although the Minster survived, many of its priceless treasures were found lost to the city. At the same time many of the houses in York which were owned by the church were seized by the Crown and sold to royal officials and London Merchants.

Henry did, however, do York a great service when he set up the Council of the North in the former house of the Abbot of St. Mary's. This was now the administrative centre for the North and helped York to become an important city once again.