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Guide

Compensation for loss of house value caused by public works

If a new or altered road, railway, tramway or airport has cut what a buyer would pay for your home, you may be able to claim that loss in money — without selling, and without any land being taken from you. The route is Part 1 of the Land Compensation Act 1973.

What is paid
The fall in open-market value caused by the use of the works
Land taken
None needed — Part 1 exists for owners who lose value only
Earliest claim
Twelve months after the works came into use
Your cost
Nothing up front; the authority reimburses fees on settlement

What has to have caused the loss

The loss must come from one or more of seven physical factors named in the Act: noise, vibration, smell, fumes, smoke, artificial lighting, and the discharge of any solid or liquid substance onto the land. Traffic and rail noise is by far the most common.

Loss of a view, loss of privacy, disruption while the works were being built and worry about future phases are not compensated, however real they feel. It is the effect of the finished works in use that counts.

How the figure is worked out

A RICS surveyor values your property twice as at the first claim day: once as though the scheme did not exist, and once taking the works and their use into account. The difference is the depreciation claimed, evidenced by comparable sales, traffic and noise data and the authority’s own scheme documents.

Our desktop valuation tool runs a first pass on that same logic from sold prices around your postcode, so you can see a likely range before committing to anything.

Who pays for the claim to be prepared

The acquiring authority. Surveyor fees are normally agreed by reference to Ryde’s Scale and reimbursed when the claim settles, along with reasonable legal costs. You are not asked for money up front and pay nothing if the claim does not succeed.

Common questions

How much compensation can I get for loss of house value?
The award is the fall in your property's open-market value caused by the use of the works. Awards commonly fall between a low single-digit and a low double-digit percentage of value, so a modest house beside a new bypass may see a few thousand pounds while a larger property under a new flight path can be considerably more.
Can I claim without selling my house?
Yes. A Part 1 claim compensates the loss in value while you still own the property. You do not need to sell, move, or show that a buyer walked away.
How long do I have to claim for loss of house value?
You cannot claim until the works have been in use for twelve months, and you should submit within six years of that first claim day.

Find out where you stand

The eligibility check takes about a minute and needs no account. The acquiring authority pays the professional fees when a claim settles.

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