Emergency Services including Police, Ambulance and North Yorkshire Fire & Rescue are on the scene following the incident shortly before 6:00am.
Residents say they were woken by a "loud boom" at around 5:45am with many rushing outside to see what had happened.
A resident from the house next door has been speaking to This Is The Coast about the experience:
As well as Cambridge Street, Victoria Road is sealed off and there is no access to Aldi Supermarket currently.
Sue from The Street has contacted This Is The Coast to offer the hall at The Street for any residents who want shelter and a warm drink.
North Yorkshire Police say:
"We're at the scene of an explosion at a house in Scarborough this morning
We received a report of an explosion at the property in Cambridge Street, Scarborough, at about 5.45am.
Our officers attended the location immediately, working alongside North Yorkshire Fire & Rescue Service to evacuate local residents, and close roads in the area, to keep people safe.
Emergency services remain at the scene, and we ask members of the public to avoid the area at this time."
North Yorkshire Fire & Rescue have just posted this update:
"On-going incident Cambridge Street Scarborough.
Fire crews are currently supporting a multi‑agency response to reports of an explosion at a residential property on Cambridge Street in Scarborough.
We were called to the incident at around 5.45am today (Friday 8 May). As a precaution, around 50 to 70 nearby homes and businesses have been evacuated and a cordon remains in place.
Firefighters are working alongside the ambulance service, police and the gas board, at the scene.
Members of the public are asked to avoid the area while emergency services continue to deal with the incident. Further updates will be shared when more information becomes available."
VIDEO FROM THE SCENE AT 7:45AM
Scarborough and Whitby MP, Alison Hume has praised the efforts of the emergency services saying:
"Thank you to the emergency services and other key workers for attending this morning's incident on Cambridge Street.
The surrounding area remains sealed off, as reports of an explosion at a residential property are investigated. I ask members of the public to stay away from the area so those on the scene can do their jobs.
I also want to thank staff at The Street for offering refreshments and shelter to evacuated residents."
Two people were taken to hospital following the incident.
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