Winchester Cathedral has won compensation from the Government for disturbance to its hallowed grounds caused by traffic noise from the M3.

The Dean and Chapter has received £86,000 from the Highways Agency because properties in The Close are devalued by the distant drone of motorway traffic.

The award, revealed in the cathedral annual accounts, comes a decade after the motorway extension through Twyford Down was completed in 1994. Cathedral chiefs admit the claim was "highly speculative", with the motorway three-quarters-of-a-mile from the church. But the cash is a welcome boost to its coffers, which are in the black for the first time in four years.

In total, around £5m has been paid out by the Government in compensation for noise disturbance from the M3. Winchester-based estate agents, FPDSavills, pursued the claim under the Land Compensation Act 1973.

Andrew Lalonde, surveyor and valuer, also acted for many private home-owners in the Winchester, Twyford, Compton and Shawford areas. He said: "Under the Act, if it is felt houses have lost value because of a motorway, there is period of six years from the date it opened to submit a claim to the Highways Agency."

Factors considered include: noise, dust, vibration and pollution. The Dean, the Very Revd Michael Till, said: "You would not believe it, but the noise comes beaming straight across The Close. It does change life having a perpetual background noise. It is quietly wearying - like a constant low-level toothache."

The annual report states: "Several years ago, a claim was entered against the Department of Transport by the Cathedral for the loss of amenity and disturbance caused to The Close by the imposition and proximity to the then new M3 motorway.

"Work on the claim, which was regarded as highly speculative, was undertaken by a solicitor on a no-win, no-fee basis and the result, after protracted negotiation, has been an award of £86,117, including interest and net of costs."

The report also shows the Cathedral is in the black to the tune of £113,000. Adrian Munns, receiver-general and canon treasurer, said: "We have a surplus after four years of deficit. It is not just the compensation that has made the difference, but a number of factors, including tight control of expenditure and generous support from the Friends of Winchester Cathedral and others."

Major events included the Flower Festival, which netted £109,000. Cathedral chiefs have used the latest windfall to help fund restoration of historic properties in The Close. Four houses and three flats, with the Pilgrims' School and diocesan offices, are expected to generate a rental income of £344,000 in 2004/05.

Mr Munns said multi-million pound properties in The Close would not be sold off, but could be let. "The most important thing is to sustain the cathedral and its mission. We have a £2.8m restoration programme to fund over the next 10 years."

Visitor numbers were slightly down at 120,238 last year. But figures are more encouraging for 2004, partly due to the success of celebrations marking the 450th anniversary of the marriage of Mary Tudor and Philip of Spain.