Police officers and fire crews, including a rescue tender from Clun, Craven Arms and Wellington were scrambled to Market Square at 8.05am, along with an operations officer.
Pictures posted on social media show the rear of a van wedged in the side of a building, which is understood to be a holiday cottage.
Market Square Cottage is a two storey, self-contained, one bedroom period property, just across the square from the hotel, which it is a part of. People are understood to be in the building at the time. The emergency services have confirmed that no-one was hurt.
Castle Hotel owner Henry Hunter did not want to comment on the circumstances of the incident.
But Mr Hunter confirmed: "The hotel is open and trading as normal and we are looking forward to welcoming guests. Bishop's Castle is also open for business. There were no injuries but I don't want to comment at all about the incident.
"The police and fire service were here in a very timely manner."
Keith Whiddon, who was at the scene soon after the incident but didn't see it happen, said: "What I would say is that had it rolled back a few feet to the right it would have gone down the steep high street which could have been absolute carnage!"
Town councillor and former town mayor Grant Perry, who runs Drovers Travel, in Church Street, thought it was a freak incident.
"It's a freak incident. It looks like the van's handbrake failed and it rolled backwards. We're a hilly town and people have to park here.
"We can't flatten the hill! So I think it is just a freak."
A spokesman for Shropshire Fire & Rescue Service said that no fire service action was required but a structural engineer was requested to attend.
The fire service incident stop message was received at 9.09am.