Fracking could wipe tens of thousands of pounds off house prices
05-02-2015
Estate agents fear fracking will collapse house prices and sales in Lancashire, Manchester and Sussex
Thousand to join Balcombe 'occupy' camp
The first extensive study of estate agents on the subject of fracking and house prices revealed a shocking fall in the value. Photo: Reuters
By Anna White, Property correspondent
Fracking could wipe thousands of pounds off the value of homes in areas where the controversial mining technique is allowed to go ahead.
The first extensive estate agents’ survey in Lancashire, Manchester and Sussex – areas in which energy firms have applied to start extracting shale gas – showed that two thirds of respondents thought house prices would suffer.
The majority of agents thought the loss of value per property could be as much as 10pc, while a handful estimated that prices could fall by up to 70pc.
The report, carried out by the research agency Redshift on behalf of Greenpeace, found that more than half of the 60 estate agents questioned feared that fracking could reduce sales.
One in four said that home-buyers had expressed concerns about fracking. Four reported that some customers have pulled out of deals as a result.
The Government has said there is no evidence that fracking will affect house prices, yet ministers have so far refused to publish in full a heavily redacted report believed to contain evidence of the shale industry’s impact on the housing market.
James Nisbet, who lives close to one of the Lancashire sites where energy firm Cuadrilla is seeking to operate, says potential buyers have pulled out of purchasing his £375,000 house after learning about the energy plans.
“We have had six viewings, all with very positive feedback, but no one wants to commit to buying with the fracking shadow hanging over us,” he said.
• Gatwick oil digger tones down hopes for creating a Dallas in Sussex
• Is there any future for fracking in Britain
Paula Higgins, of HomeOwners Alliance, said: “Homeowners are being kept in the dark on how fracking will affect them. Some are already bearing the brunt through aborted sales.”
• Across England and Wales house prices increased by 5.3pc over the 12 months to March, according to the Land Registry. This takes the average property value to £178,007 compared with the peak of £181,049 in November 2007.