The government has been slammed for censoring a report into the effect of shale gas exploration on local on property prices.
As the fracking industry booms in the UK, there is a growing concern about the impact it will have on local property prices in areas where there is the highest level of fracking activity taking place, after the government censored a report into the impact of shale gas drilling that examines the effect on house prices and pressure on local services.
Campaigners are now calling for full publication of the study carried out by Whitehall officials, as the government continues to resist the idea of offering compensation to individual householders near proposed fracking sites.
The very fact that there are already discussions surrounding ‘potential compensation’ for homeowners in itself suggests that fracking will have a negative impact on local house prices.
The report, called Shale Gas: Rural Economy Impacts, was recently released under environmental information laws with large portions of the text removed. In particular, the section looking at the impact of drilling on residential property prices has three significant sections missing. Again, this indicates bad news for local home owners.
The published sections mention a 2010 report about Texas, which found that residential properties valued at over £150,000 and within 1,000 feet of a well site had their values decreased by 3% to 14%.
Campaigners are now calling for full publication of the study carried out by Whitehall officials, as the government continues to resist the idea of offering compensation to individual householders near proposed fracking sites.
The very fact that there are already discussions surrounding ‘potential compensation’ for homeowners in itself suggests that fracking will have a negative impact on local house prices.
The report, called Shale Gas: Rural Economy Impacts, was recently released under environmental information laws with large portions of the text removed. In particular, the section looking at the impact of drilling on residential property prices has three significant sections missing. Again, this indicates bad news for local home owners.
The published sections mention a 2010 report about Texas, which found that residential properties valued at over £150,000 and within 1,000 feet of a well site had their values decreased by 3% to 14%.
Although it is hard to compare overseas locations to a UK setting, it does offer some indication about the impact that fracking can potentially have in local home values.
Caroline Lucas, the Green MP for Brighton Pavilion, criticised the censoring of the report, saying it would increase people’s concerns.
“It appears that the government has a great deal to hide with regards to the risks of fracking for local communities,” she said. “The number of redactions would be almost comical if it weren’t so concerning. What are the economic, social and environmental impacts and effects upon housing and local services, agriculture and tourism that the government is so keen to withhold from us? The implications of fracking for rural communities are vast. It is critical the public knows the facts: absolute transparency is essential – censorship should not be an option.”
Unredacted parts also pointed to other economic studies revealing that anything between a small positive impact on property prices for homes within 2km of wells dependent on commercially-piped water in Pennsylvania, to a drop of between 4% and 7% for homes within 4km of sour gas wells and flaring oil batteries in Alberta, Canada.
The government has suggested £100,000 of “community benefits” to be shared among local people affected by fracking.
However, Barbara Richardson, of the Roseacre Awareness Group opposing fracking in Roseacre, Lancashire, told the Guardian that the sum was an “insult” as some people in her area are unable to sell their houses at all.
“One couple had agreed a house sale, but just as the plans were announced in February their buyers negotiated a reduction of 14.5% due to the uncertainty over fracking. Their agents urged them to take it and move out before more became known about the plans,” she said. “There are a couple of other properties on the market but not selling. Everyone asks about the fracking plans.
“At the other site, at Little Plumpton, an agent told one family they are unlikely to be able to sell so there is no point in valuing or trying to sell … The paltry £100,000 community benefit offered per well is an insult. People do not want community benefits, they want restitution.”