Yesterday North Yorkshire was hit by the devastating news that councillors have approved an application to carry out fracking in England for the first time in five years. However, leading fixed fee estate agent, eMoov.co.uk, believes the consequences could extend to the local Yorkshire property market, with the increase in property values enjoyed over the last 12 months set to reverse.
An application by UK firm Third Energy was voted in seven to four in favour for shale gas near the village of Kirby Misperton, by North Yorkshire County Council. This is the first application to be approved in the UK since 2011, since tests on the Fylde coast in Lancashire were found to have been a probable cause of minor earthquakes in the area.
However, despite the ‘go ahead’ from the councilors, this application is far from being approved. From the start of the hearing on Friday, hundreds of protesters gathered outside County Hall in Northallerton to campaign against the application.
North Yorkshire is known for its beauty, which attracts many visitors and upholds a thriving tourism industry, all of which residents are extremely proud of. Yet, with the new application for fracking now going ahead, this could have detrimental impact on the economy and property market in the area.
After looking at the impact this has had on the property market in America, I am extremely concerned with what is happening. Fracking has pushed house prices down, between 4% and 7% in the U.S, mostly as a result of concerns for the environment and individuals health.
Although many are concerned that they have lost value to their property, there are some positives. With fracking taking place, more jobs have been created in the area and as a direct result, local residents have not only got onto the property ladder, but have also been able to afford a bigger property due to the drop in house prices. This could potentially be the same for North Yorkshire if this latest application goes ahead.
Generally speaking, I would say that this will have a negative impact on the market as house prices in the fracking areas will undoubtedly fall. Although it would create jobs, I’m sure it will be hard to find buyers that wish to live next to or even near a fracking site as it will put people into negative equity on their property.
Overall however, I would say this will not only have a devastating impact on the environment and possibly the economy, but also in the local community. The government has pushed the application of fracking through, against the wishes of the local communities, and as a result, broken their trust – again.
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