Could your business be affected by East West Rail? Understanding your rights to compulsory purchase compensation, relocation costs and business disturbance could make a significant financial difference.
For many business owners, their premises are much more than simply a building. They may represent years of investment, an established customer base, specialist equipment and a location that is essential to the successful operation of the business.
So, what happens if those premises are required for a major infrastructure project such as East West Rail?
If your business operates along the proposed East West Rail route, particularly around Bedford, Tempsford, St Neots, Cambourne or Cambridge, it is important to understand how the proposals could affect your premises and what compensation may be available.
At Olden Property, we provide independent compulsory purchase and compensation advice to commercial property owners, landlords and business occupiers affected by infrastructure and regeneration schemes.
Importantly, business compensation can extend well beyond the market value of the property itself.
Could East West Rail Affect Your Business?
East West Rail is a major railway project intended to improve connections between Oxford, Milton Keynes, Bedford and Cambridge.
The proposals include substantial new railway infrastructure, stations, access arrangements and associated construction works.
East West Rail's final route-wide consultation took place between April and June 2026, and the project is progressing towards an application for a Development Consent Order (DCO) in 2027.
The DCO, if granted, could provide powers to compulsorily acquire land and property needed for the railway.
For businesses, the potential effects could include:
Permanent acquisition of commercial premises.
Loss of part of a site, yard or parking area.
Temporary occupation of land during construction.
Changes to access and servicing arrangements.
Disruption to trading operations.
Relocation to alternative premises.
Loss of customers or business interruption associated with an acquisition.
In some circumstances, the permanent closure of a business.
The effect will depend on the final railway proposals, the property interest held and the particular circumstances of the business.
What Happens if East West Rail Needs Your Business Premises?
If your premises are required for East West Rail, the acquiring authority may seek to purchase the property or acquire the necessary rights by agreement.
If compulsory acquisition powers are subsequently granted, those powers may be used where agreement cannot be reached.
However, the compensation payable is not necessarily limited to the value of the building or land being acquired.
The compulsory purchase compensation framework recognises that acquiring commercial property can cause financial losses to the business occupying it.
For example, a business may need to find replacement premises, move machinery, notify customers, install new equipment and temporarily suspend operations.
These additional consequences can be significant and should be considered when preparing a compensation claim.
Can a Business Tenant Claim Compensation From East West Rail?
Yes. This is an important point that many business occupiers may not realise.
You do not necessarily need to own the freehold of your premises to have a compensation claim.
A commercial tenant whose qualifying leasehold interest is acquired may be entitled to compensation.
Depending on the circumstances, a claim could include the value of the leasehold interest, disturbance losses and reasonable relocation costs.
The position will depend on the terms of the lease, the nature of the occupation and the statutory compensation provisions.
Businesses occupying premises under short leases, periodic tenancies or other arrangements should seek advice rather than assume that they have no entitlement.
The compensation position of a tenant can be quite different from that of the freehold owner, and each interest needs to be considered separately.
What Business Compensation Could East West Rail Pay?
There is no single compensation figure that applies to every business.
The amount payable depends on the property interest acquired, the impact on the business and the losses that can properly be established under the compensation rules.
Potential heads of claim may include the following.
1. Property or Leasehold Value
Where a freehold or leasehold interest is acquired, compensation may include the value of that interest, assessed in accordance with the applicable compulsory purchase valuation rules.
The valuation must take account of the relevant no-scheme principle, which generally requires the effects of the acquiring scheme to be disregarded when assessing the property interest.
For business owners who also own their premises, this can be an important component of the claim.
2. Business Relocation Costs
If a business needs to move because its premises are acquired, reasonable relocation costs may be recoverable.
Depending on the circumstances, these could include removal contractors, transportation of machinery and equipment, reconnecting services and necessary expenditure associated with establishing operations at replacement premises.
A specialist business may face particularly substantial relocation costs.
For example, moving an engineering workshop with heavy machinery is very different from relocating a small office.
Each claim needs to reflect the actual requirements of the business.
3. Business Disturbance
Business disturbance compensation can be one of the most important elements of a commercial compulsory purchase claim.
Disturbance may include reasonable financial losses directly attributable to the acquisition, such as temporary loss of profits, additional operating costs and certain expenses incurred in relocating.
Claims must be properly evidenced and satisfy the relevant legal requirements, including reasonableness and mitigation of loss.
It is therefore important to maintain clear records of expenditure and the effect of any relocation on business performance.
4. Loss of Profits
Some businesses may experience a reduction in turnover or profitability because they are required to relocate.
For example, a retail business that depends on passing trade may find that moving to another location affects customer numbers.
A manufacturer may need to suspend production while specialist machinery is dismantled, transported and recommissioned.
Where the relevant losses are attributable to the compulsory acquisition and satisfy the compensation rules, they may form part of the disturbance claim.
This is why accounting information and a clear understanding of the business are important when preparing compensation evidence.
5. Business Extinguishment
In some circumstances, relocating a business may not be commercially realistic.
A business may depend on a particular location, customer base or specialist premises that cannot reasonably be replaced.
Where the business cannot reasonably relocate, compensation for extinguishment may be appropriate, subject to the applicable legal tests.
This can involve consideration of the value of the business, including goodwill, rather than simply calculating removal expenses.
Business extinguishment claims are particularly complex, and specialist advice should be obtained before deciding to close a business or abandon relocation plans.
6. Professional Fees
Reasonable professional fees incurred in preparing and negotiating a compulsory purchase compensation claim may also be recoverable, subject to the applicable rules.
This can include appropriate valuation and surveying advice.
East West Rail has published arrangements and guidance concerning the reimbursement of professional agent fees for qualifying affected parties.
It is sensible to clarify the fee arrangements and, where appropriate, obtain an undertaking before substantial professional work is undertaken.
What if East West Rail Only Takes Part of Your Business Premises?
Not every acquisition involves an entire commercial property.
East West Rail may only require part of a site, such as a strip of land, an access road, a storage yard or parking spaces.
However, the consequences for the business can be much greater than the value of the land physically acquired.
Consider a commercial property where the railway requires part of the external yard.
The land itself may represent a relatively small proportion of the overall site, but losing it could affect deliveries, vehicle turning, storage or access to loading doors.
This could reduce the usefulness or market value of the retained premises.
Depending on the circumstances, compensation may need to consider severance, injurious affection and disturbance, as well as the value of the land taken.
Where the retained property can no longer be reasonably used for its existing purpose, further statutory rights may also need to be considered.
Could East West Rail Affect Businesses Without Acquiring Their Premises?
Yes, although the compensation position is different.
A business may be affected by construction activity, altered access arrangements, noise or other consequences of the railway without its premises being compulsorily acquired.
However, disruption alone does not automatically create an entitlement to compensation.
Whether a claim is available depends on the nature of the interference, the relevant statutory provisions and the circumstances of the property.
For example, there are statutory compensation provisions concerning certain physical effects of public works after they come into use, but these do not provide general compensation for every reduction in trade or inconvenience caused by construction.
Businesses concerned about indirect effects should obtain advice on whether any statutory or other legal entitlement may arise.
East West Rail Safeguarding and Commercial Property
Safeguarding Directions have been issued for land associated with the East West Rail proposals.
Safeguarding helps protect land potentially required for the railway from conflicting development.
For commercial property owners and occupiers, this can create uncertainty about future investment, expansion or disposal of their premises.
Qualifying owners and occupiers within the safeguarded area may have statutory blight rights, potentially allowing them to require their property interest to be acquired earlier than would otherwise be the case.
However, eligibility is subject to statutory conditions, including requirements relating to the type of interest held and, for certain commercial interests, rateable value and occupation.
A business owner considering a blight notice should therefore seek advice on eligibility before proceeding.
Should Your Business Relocate Before East West Rail Acquires the Property?
This is an important commercial decision.
If you believe your premises may be required, you may understandably want to begin looking for alternatives.
However, relocating before the acquisition position is clear can create complications.
For example, it may be necessary to establish whether the move was reasonably required because of the scheme, whether the expenditure was reasonable and whether the claimed losses fall within the compensation framework.
Businesses also have a duty to take reasonable steps to mitigate their losses.
We would therefore recommend obtaining professional advice before committing to substantial relocation expenditure.
Early planning is sensible, but the timing and terms of relocation should be considered carefully.
What Information Should Businesses Keep?
A well-supported compensation claim depends on good records.
If your business may be affected by East West Rail, it is sensible to retain:
Your commercial lease or freehold title information.
Accounts and financial statements.
Records of turnover and profitability.
Details of machinery, equipment and specialist installations.
Existing property plans and accommodation details.
Information about access, deliveries and parking requirements.
Correspondence received from East West Rail or its representatives.
Quotations and invoices for potential relocation expenditure.
Records of business disruption or additional costs.
Keeping this information organised from an early stage can make it easier to establish and evidence a claim later.
Do You Have to Accept East West Rail's Compensation Offer?
No. An initial offer does not necessarily represent the full compensation that may be payable.
Where compensation is being negotiated, the acquiring authority's assessment should be considered alongside independent valuation evidence and the circumstances of the business.
It is particularly important to distinguish between the value of the property interest and additional disturbance losses.
An offer based primarily on the property value may not fully address the financial consequences of relocation.
Before accepting an offer, business owners should understand precisely which heads of compensation are included and whether any elements of the claim remain outstanding.
Why Businesses Should Appoint Their Own CPO Surveyor
Compulsory purchase compensation is a specialist area of property valuation.
An independent Chartered Surveyor can help identify the property interests affected, assess the valuation evidence and prepare and negotiate the relevant compensation claim.
For a business, this may involve working alongside accountants, solicitors and other professional advisers to establish the financial implications of acquisition or relocation.
At Olden Property, our role is to represent the interests of the affected property owner or business occupier.
We can assist with:
Reviewing East West Rail acquisition proposals.
Establishing the value of freehold and leasehold interests.
Assessing the effect of partial acquisition.
Identifying potential disturbance and relocation claims.
Reviewing compensation offers.
Negotiating with the acquiring authority's surveyors.
Coordinating with other professional advisers where required.
The objective is to ensure that the relevant property and compensation issues are properly considered and supported by appropriate evidence.
When Should a Business Seek Advice About East West Rail?
Ideally, before any significant decisions are made about the property or business.
You do not need to wait until compulsory acquisition powers have been granted to obtain independent advice.
If you have received a letter from East West Rail, been contacted by a land agent or discovered that your premises may fall within the proposed acquisition area, this is a sensible time to review your position.
Early advice can help establish the potential effect on your property and business, identify the information that should be retained and clarify the next steps.
East West Rail Business Compensation Advice From Olden Property
Olden Property is an independent Chartered Surveying practice providing compulsory purchase, valuation and compensation advice across London, Kent and the South East, including businesses affected by major infrastructure projects.
Tom Olden MRICS is a Chartered Surveyor, RICS Registered Valuer and member of the Compulsory Purchase Association.
We understand that compulsory acquisition of commercial premises is not simply a property transaction. For business owners, it can affect livelihoods, employees, customers and years of investment.
Our approach is to provide clear, practical advice and help clients understand the compensation position before making important decisions.
Is Your Business Affected by East West Rail?
If you own or occupy commercial premises that may be affected by East West Rail, we would be pleased to discuss your circumstances.
Whether you operate a shop, office, industrial unit, warehouse, workshop or another commercial business, it is important to understand your rights and the potential compensation available.
Contact Olden Property if:
You have received correspondence from East West Rail.
Your commercial premises may be required for the railway.
You are concerned about losing part of your land or access.
You need advice about relocating your business.
You have received an acquisition or compensation proposal.
You want an independent assessment of your potential claim.
Send us your property address, a brief description of the business and any correspondence or plans you have received.
We can review the position and explain how we may be able to assist.
Speak to Olden Property about East West Rail business compensation and compulsory purchase advice.
For a wider explanation of the proposed railway and the compulsory purchase process, read our related article: East West Rail CPO: What Property Owners Need to Know.