You are here: Home - News -

Fracking house price threat spreads

  • 02/07/2013
  • 0
Manchester homeowners could face uncertainty over the value of their property if controversial fracking proposals go ahead.

Researchers from the British Geological Survey have identified shale gas reserves stretching across the north of England. These reserves, far larger than previously documented, lie under cities such as Manchester, York and Leeds.

The discovery comes as the government announced fast-track measures and tax breaks for shale gas exploration. This process involves fracking, or pumping water and chemicals underground in order to force out the shale gas.

Last week, a surveyor warned a lack of clarity on where fracking will take place could cause house prices in affected areas to fall by as much as 30%.




Valunation managing director Alison Beech said while it was difficult to measure the actual impact of fracking there were worries about tremors and possible water pollution.

She said: “Despite the wide publicity and protests, it is just too early to gauge any adverse effects on house prices or demand, but it is obviously vital for surveyors in affected areas to be alert to any market reaction.

“For the time being, it is important not to over react but surveyor reports should offer an appropriate comment in localities where this could assume greater importance. There does not yet seem to be any information regarding the geographical extent of possible physical effects.”

Even in the absence of physical damage, public worries about fracking could have a knock-on effect on mortgage valuations, she added.

On the other hand, the increased economic activity could have a positive impact on the local housing market.


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Legal & General executive salaries hit £560k

Legal & General (L&G) yesterday announced it has upped the base salary for its top executives by a fifth to £560,000.