Payouts may be on the way for homes along the Metro route

They claimed the route runs so close to their homes in Western Avenue, Tipton, they can hear on-board announcements being made to passengers.

The decision was confirmed in a letter to a local MP, who has backed their campaign.

Altram, the group which operates the line, says it will comply with some points put forward by residents.

Levels of compensation

The Chief Executive of Altram, Dr Peter Howarth, wrote that he had "no intention of avoiding obligations set out in the Land Compensation Act".

But he said only a few residents would receive the levels of compensation they are seeking.

Dr Howarth added that a number will be disappointed by the final settlement because "relatively few properties have had their values reduced" and therefore had no basis for the claims made.

But Adrian Bailey, Labour MP for West Bromwich East, said residents should not relax just yet.

He said: "The letter, whilst acknowledging compensation, is very careful to spell out that they may not get a lot of what they want."

The tram system runs from Wolverhampton to Birmingham and was launched in 1999.

There are plans for further routes to be built.