The leader of Cheshire East and a fellow councillor are among hundreds of residents considering claiming compensation from the council.

Coun Wesley Fitzgerald and Coun Frank Keegan may seek payouts over claims the Alderley Edge bypass will devalue their homes.

Their potential claims came to light after a full council meeting where members agreed to add £3m to a fund already set up to cover costs arising from the bypass, including compensation claims. That decision doubles the council’s existing contribution to the bypass costs.

Both Tory councillors declared an interest and took no part in the debate. Although they were not asked to explain their interests at full council, they had told an earlier Conservative group meeting.

Coun Fitzgerald, who lives on Ashford Road, Wilmslow, less than 500ft from the bypass, said: "My neighbours and I have been approached by several firms specialising in financial claims for people affected by large developments, such as the Alderley Edge Bypass. As leader of the council, I must be above suspicion. Everything I do has to be seen to be transparent, open and honest.

"Although I have reached no decision yet as to whether I will go forward with a claim, I felt I needed to declare an interest now in anything pertaining to compensation for home owners affected by the construction of the bypass.

"This is why I took no part in the decision at the recent council meeting and left the room while the agenda item was discussed."

The council hopes to find the extra £3m by selling land and buildings it owns – but if that doesn’t cover costs it will resort to a loan.

A surveyor has already assessed Coun Keegan’s Brook Lane home.

The councillor said: "I do plan to claim for devaluation of my home, which is very near the bypass. A judge will assess damages. I am leaving that to the experts. I think councillors have as much right to claim and should be treated no differently from other members of the public."

He said he felt the bypass was necessary to ease traffic through the village, but added: "I have never voted on the matter or taken part in campaigns to get the bypass built. When I moved 25 years ago it did not look likely it would go ahead."

He added: "The council doesn’t know how many people will claim yet – they should have waited to see if there is a basis for extra money."

Compensation claims can be considered from November 20 and for six years afterwards.

Chartered surveyor Colin McCullough, who owns Peter Almond and Partners Ltd in Macclesfield, is looking at 180 claims, although he says not all will be viable. He reckons about 500 will be submitted to Cheshire East, most of them under the Land Compensation Act 1973, citing devaluation of property by noise, artificial light or dirt and dust.

Coun Michael Jones said: "As the portfolio holder responsible for finance, I want to be totally honest and clear in regard to this situation.

"This was a key and major scheme for Cheshire East and the £3.1m estimate has been agreed to cover the worst case scenario. Rigorous checks, against very rigid criteria, will be used to judge every single claim that we receive. Each will be passed for independent assessment and if a claim is agreed, a settlement will be negotiated between the homeowner and the council.

"If an agreement is not reached, the claim will go to a tribunal. I will be keeping a close eye on this whole process and will be updating relevant parties when it is appropriate."