Compensation is a complicated subject and any individual whose business is affected is strongly recommended to consult a legal professional to advise on their rights and who could also act on their behalf in negotiations.
The general rule is that there is no compensation if a business is affected by road works. Successive governments have taken the view that businesses should not have the right in law to any particular given level of passing trade, and that traders must take the risk of loss due to temporary disruption of traffic flows along with all the other various risks of running a business. There is no statutory provision for compensation by the highway authority if a business is affected by road works.
Where you have not had land taken but the value of your property is decreased by the use of the new road
Under Part 1 of the Land Compensation Act 1973 (the “Act”), compensation can be claimed by people who own and also occupy property that has been reduced in value by more than £50 by physical factors caused by the use of a new or altered road.
The physical factors are noise, vibration, smell, fumes, smoke and artificial lighting and the discharge on to the property of any solid or liquid substance.
The cause of the physical factors must be the new or altered road in use. For example, if a road is altered, the noise and other adverse effects must arise from the traffic using the altered stretch of road. Part 1 compensation cannot be claimed for the effects of traffic further down the road where no alteration has taken place or for loss of trade caused by altered traffic patterns.
Under the provisions of the Act, a road is altered only when there is a change to the location, width or level of the carriageway or an additional carriageway is provided beside, above or below an existing one. Part 1 compensation is not payable when the carriageway has simply been resurfaced.
Part 1 compensation is also not payable where part of the affected property has been taken for the construction of the new or altered road. This is because the effect of the use of the road on the value of the rest of the property must be taken into account in calculating the compensation for the part of the property taken.
Loss of view or privacy, personal inconvenience and physical factors arising during the construction of the road are also not included under Part 1 compensation.
For more information regarding entitlement and assessment of Part 1 claims please refer to the Government website gov.uk/compensation-road-property-value
How to claim
You can make a claim yourself or ask someone to do this for you. Anyone can act for you, but most people prefer to use a professional property valuer or an agent that specialises in Part 1 claims to prepare and negotiate the claim on their behalf.
Claims should be made to Nottinghamshire County Council and addressed to:
Major Projects and Improvements – TBH Fl.8
Via East Midlands Limited
Bilsthorpe Highways Depot
Bilsthorpe Business Park
Please note that personal data will be treated in accordance with the requirements and obligations upon the Council contained in the General Data Protection Regulation.
You should keep a copy of your claim. Using a type of postal delivery that provides you with proof of posting is advisable in case your claim does not reach us and we need to be sure that a claim was made.