Police say the cordon will remain in place until at least 8pm after 40 homes have been evacuated.
Police have executed a warrant this morning (Thursday August 4) as part of a pre-planned operation on Oxford Street, Bridlington, following reports of illegal chemicals being stored at the property.
Superintendent Dave Houchin from Humberside Police's Community Safety Unit said: "Our key priority is the safety of the public and we thank them for their patience and understanding whilst necessary enquiries are undertaken.
"We are working hard to return things to normality at the earliest opportunity. At this time we expect the cordon to remain in place until at least 8 pm when a further review will be undertaken.
"Should the cordon need to remain in place, provision is being made to accommodate residents who have been unable to make alternative arrangements overnight.
"We are working in conjunction with partner agencies to ensure those affected are provided for and plans are in place should the situation continue."
Residents from around 40 homes have been removed from their properties to allow the explosive ordnance disposal team to investigate. Police have indicated to residents, who are currently gathered in The Spa Bridlington, that they may be able to return to their homes tonight.
Specialist officers attended as part of the warrant and a 54-year-old man was arrested and is assisting police with enquiries.