LANDOWNERS could be due thousands of pounds in pylon damage and disturbance compensation without realising it.

George F. White, the land and property specialists, said the majority of electricity pylons are in place under a temporary right – a wayleave agreement – between the landowner and electricity distributor. The landowner receives an annual payment to reflect the detrimental impact to agricultural activities that pylons have by being on or over their land.

However, electricity distributors may offer a one-time only payment to obtain permanent rights to keep the pylons on the land, which many landowners take without realising just how much extra compensation they’re entitled to.

Robert Moore, GFW rural practice surveyor, said: "Our research shows that, overall, the compensation amount payable should be much higher than the current amounts being issued for permanent rights.”

The research focused on a four mile stretch of pylons around a North East town and assessed seven registered land titles. It looked at how the land title as a whole was affected and, by understanding how the legislation works in practice, a compensation payment for the loss in value of the land was calculated to be much higher, rather than just capitalising annual payments alone.

The capitalisation method fails to explore the impact pylon apparatus has upon assets such as dwellings, leisure facilities, minerals and land with development potential. One land title – with arable land, residential and commercial property – went from a probable payment of £15,697 using the capitalisation approach to a possible compensation payment of over £230,000 by assessing the diminution in value to the property assets.

Mr Moore said: “There is nothing within the legislation that states capitalising annual wayleave payments is the set way to assess compensation. By doing so, the landowner fails to benefit from being compensated for the actual loss in capital value and that includes failing to address the impact of pylons on residential and commercial property as well as development opportunities.

"In simple terms if there are two identical houses – one with a pylon in the garden and the other without – the one with the pylon is clearly going to be worth less. It is this loss in value which needs assessing.

"We urge landowners who are considering granting permanent rights to electricity distributors to consider very carefully whether the offer on the table is truly reflective of the loss in value to the property as once a permanent right is handed over and a compensation amount agreed, it’s too late to look back."