Heathrow hopes to overcome community opposition to 3rd runway with more extensive house purchase plans

Date added: 2 December, 2014

Heathrow held a consultation on compensation arrangements earlier in the year. Hacan did not take part, believing people should not have to agree to, or comment on, entirely hypothetical proposals. Now Heathrow has felt the need to improve the generosity and scope of its compensation offer, due the manifest unfairness of its previous offer. It will now extend the offer to buy houses, for pre-blight market price plus 25%, and with £7,500 for selling costs and stamp duty. This will now cover all of Harmondsworth, Sipson, Poyle, Colnbrook, Brands Hill, Harlington and Cranford Cross. There will no longer be unfair lines, with those just outside the line missing out. There would be about 3,750 people included in the scheme. The earlier offer was for only 750 properties in Sipson and Harmondsworth that would be subject to compulsory purchase orders if there was a north west runway. Realising that communities die, and their spirit is lost, as soon as many people decide to accept cash and move out, Heathrow says they will “refurbish and sound-insulate any properties it buys before putting them back up for sale” in the forlorn hope that would prevent the community from losing its heart?
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Heathrow press release:

Heathrow announces new proposals to support homeowners affected by airport expansion following local consultation

1st December, 2014 (Heathrow Airport press release)

Enhanced package includes an offer to buy homes in villages in close proximity to a new runway at 25% above unblighted market value
New scheme shaped by feedback from local residents at consultation events
Homeowners will have the choice of remaining in their current home

Heathrow has announced plans to extend its property compensation scheme should an additional runway be built at the airport. In May the airport announced plans for 25% above unblighted market value compensation for 750 homes that would be subject to compulsory purchase.

Having listened to local residents, Heathrow is now proposing to extend this offer to cover homes that will be in close proximity to a new runway but will not be compulsorily purchased.

http://your.heathrow.com/newpropertycompensationqa/

Under the improved scheme, residents living in communities close to a new runway will have the choice to either remain in their home or sell their home at 25% above unblighted market value once the new runway is under construction.

For a £250,000 property, homeowners would receive £312,500, plus £7,500 stamp duty costs and any legal fees.

Homeowners in Poyle, Colnbrook, Brands Hill, Harmondsworth, Sipson, Harlington and Cranford Cross will be covered by the improved scheme.

Properties in Longford and parts of Sipson and Harmondsworth are covered by the previously announced compulsory purchase area scheme.

The proposal is in response to feedback heard at public consultations between 21st July and 12th October of this year.

Local people said they:

– welcome the proposal to offer 25% above market value compensation plus legal fees and stamp duty costs on homes that will be compulsorily purchased

– want the airport to recognise that a new runway will have an impact on homeowners close to the new boundary of the extended airport

– are concerned that property prices will be blighted in the areas close to the boundary of the extended airport

– want to avoid a situation where next door neighbours or homeowners on adjacent streets are entitled to different compensation

Some people in this area will want to remain in their homes if the airport is expanded, others will want the option of moving out of the area.

In response to this public feedback, Heathrow is:

– confirming its intention to offer 25% above unblighted market value compensation plus legal fees, plus stamp duty costs for anyone whose home will be compulsorily purchased

– extending this scheme to cover homeowners in close proximity to the new airport boundary whose homes do not need to be compulsorily purchased

– giving people the choice of remaining in their home or moving out of the area and receiving compensation

– announcing the scheme now, and including a 25% above unblighted market value premium, to avoid blight to property prices and to keep the local property market buoyant

– proposing a single, simple and easy-to-understand flat rate of 25% above unblighted market value compensation rather than different bands of compensation for different communities

– applying the proposal to homeowners in Poyle, Colnbrook, Brands Hill, Harmondsworth, Sipson, Harlington and Cranford Cross rather than having scheme boundaries that cut across communities

People also said they want local villages to retain a vibrant local community feel. Where Heathrow purchases a property from a homeowner it will refurbish and sound insulate the property before reselling it on the open market. This will give those people who want to leave the area the option of doing so but ensure those who remain still live in a functioning community. [How does that work then ? Sounds like hollow words. Very hollow words. AW comment].

The offer is subject to regulatory approval by the CAA. Approximately 3,750 homeowners’ properties would be eligible for compensation under the revised scheme.

John Holland-Kaye, Heathrow’s Chief Executive said:

“Our proposals for expansion at Heathrow have been developed with input from local communities. We are committed to treating people fairly. People told us that we should extend our offer to local homeowners living close to the airport, and we have listened.”

“Now we want to work with local communities to ensure that local people secure the jobs and growth that expansion at Heathrow will bring.”

Heathrow will be issuing its full response to the recent public consultation, including more details on property compensation and noise compensation and mitigation, in early 2015.

Notes to editors

For more information, please visit

http://your.heathrow.com/newpropertycompensationqa

http://mediacentre.heathrowairport.com/Press-releases/Heathrow-announces-new-proposals-to-support-homeowners-affected-by-airport-expansion-following-local-a58.aspx

Change in rate of Stamp Duty

The government changed the rate of Stamp Duty, on 4th December 2014 (2 days after the Heathrow announcement).

Details at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382324/Stamp_Duty_15.pdf

The new rates of stamp duty on the part of the property price within each tax band are:

Purchase price of property (£)
£ 0 – 125,000 Stamp Duty 0%
£125,001 – 250,000 Stamp Duty 2%
£250,001 – 925,000 Stamp Duty 5%
£925,001 – 1,500,000 Stamp Duty 10%
£1,500,001 and over Stamp Duty 12%

So for a house worth £275,000 (what the government calls an average family home) the Stamp Duty would have been £8,250, and it will now be £3,750, which is a saving of £4,500.

For a house worth £510,000 (what the government calls an average London home) the Stamp Duty would have been £20,400, and it will now be £15,500, which is a saving of £4,900.

Thousands living near to Heathrow Airport eligible for new compensation

1.12.2014 (Get West London)

by Will Ackerman

Around 3,750 people whose homes will not be subject to compulsory purchase orders will be offered 25% more than the market value of their properties if a 3rd runway is built.

Heathrow’s plans for a third runway to the north-west of the existing two

Thousands of home-owners living near to Heathrow Airport will be eligible for new compensation in the event of an expansion, under measures announced today (Monday, December 1).

Around 3,750 people will be offered 25 per cent more than the market value of their homes if a third runway is built.

Details of noise compensation for those who choose not to sell their properties are expected early next year.

The airport had previously announced plans to pay 25 per cent more than the unblighted market value for 750 properties in Sipson and Harmondsworth that will be subject to compulsory purchase orders (CPOs) if the project goes ahead.

Today’s measures extend to those living in Poyle, Colnbrook, Brands Hill, Harmondsworth, Sipson, Harlington and Cranford Cross, but whose houses will not be subject to CPOs.

John Holland-Kaye, Heathrow’s chief executive, said: “Our proposals for expansion at Heathrow have been developed with input from local communities. We are committed to treating people fairly. People told us that we should extend our offer to local homeowners living close to the airport, and we have listened.

“Now we want to work with local communities to ensure that local people secure the jobs and growth that expansion at Heathrow will bring.”

Heathrow Airport will offer the payouts to those living in Poyle, Colnbrook, Brands Hill, Harmondsworth, Sipson, Harlington and Cranford Cross. The map shows the boundary.

Under the new measures, the airport would also pay £7,500 for stamp duty costs and cover any legal fees for those wishing to sell their properties.

The airport would also refurbish and sound-insulate any properties it buys before putting them back up for sale.

John Stewart, head of the Heathrow Association for the Control of Aircraft Noise (HACAN), a group opposed to any expansion, described the payouts as ‘generous’.

He said: “It’s certainly a lot more generous than they are required to make, but I think extending this offer to more people was inevitable, because if people were forced to live so close to a new runway life would be unbearable.”

However, he added: “What will the [noise] compensation be? We don’t know. People need to know that in order to make an informed decision.”

The new measures were drawn up based on the results of public consultations held between July 21 and October 12 this year.

http://www.getwestlondon.co.uk/news/local-news/thousands-living-near-heathrow-airport-8205606

Earlier:

Residents’ fury at Heathrow compensation consultation

27.7.2014 (Hacan)

Furious residents have complained to campaign group HACAN about Heathrow Airport’s most recent consultation (1). Last week Heathrow released a three month consultation seeking people’s views on who should qualify for compensation if a third runway goes ahead. But residents have told HACAN that they feel they are being steamrollered into accepting the fact that a third runway is inevitable at a time when the Government has made no decision on the future of Heathrow.

HACAN Chair John Stewart said, “We get a constant stream of emails from people throughout the year but rarely have we been deluged with so many angry emails as we have had this past week over this consultation. People are simply not prepared to discuss compensation arising from a third runway they simply don’t want”.

Stewart added: “HACAN works with Heathrow Airport on issues like flight paths which can improve the quality of life for people affected by the existing Heathrow but we will not be responding to this consultation. We believe this consultation is putting the cart before the horse (2).”

The Airports Commission, which the Government set up to look at new runways in London and the South East, will not report for another year. It is looking at three possible options for expansion: a third runway at Heathrow; a second runway at Gatwick; or a brand new EstuaryAirport.

ENDS

(1). http://your.heathrow.com/consultation/

(2). Blog by John Stewart on The cost of compensation to Heathrow: http://hacan.org.uk/blog/?p=305

http://hacan.org.uk/residents-fury-at-heathrow-compensation-consultation/

Heathrow campaign, HACAN, will not be taking part in the consultation on noise compensation, for a 3rd runway

August 2, 2014

On 21st July Heathrow published a consultation on how it hopes to persuade thousands of people, who would be badly affected by increased aircraft noise from its operations, to accept money as compensation. It is offering £550 million, if it is allowed to build a 3rd runway, in various schemes. The £550 million is a one-off, not an annual sum. The aim is to buy off opposition. The existence of the consultation aims to convey the impression that a 3rd runway is inevitable, and that Heathrow is being stunningly generous. Neither is true. The community group dealing in particular with noise due to Heathrow, HACAN, has had numerous complaints from residents who are furious about the assumptions being made in the Heathrow consultation. They do not like being steamrollered into discussions about compensation for something they deeply oppose. HACAN will not be taking any part in the consultation, and not encouraging its members to do so. They feel the compensation discussion “puts the cart before the horse”. Providing Heathrow with assistance in how best to win over residents, whose quality of life will be reduced by a new runway, is not in the interests of those overflown, now or in the future.

https://www.airportwatch.org.uk/2014/08/heathrow-campaign-hacan-will-not-be-taking-part-in-the-consultation-on-noise-compensation-for-a-3rd-runway/

Heathrow residents to demand financial compensation for impact of Airports Commission report on their house prices

December 16, 2013

People with homes near Heathrow will press for financial compensation if the Airports Commission announces on 17th that they are backing a new Heathrow runway. As the Commission is not due to report till summer 2015, at the least they face blight and an impact on their house prices over the next 18 months, while they are held in limbo. Anti-Heathrow campaigners will appeal to Sir Howard Davies, chairman of the Airports Commission, to ensure homeowners receive financial support for the uncertainty and potential damage that the 17th December announcement may cause. The leak of the report suggests the Commission favours first one runway, and also a second runway at Heathrow. That would mean a large number of people across west London affected by one or other proposal. The issue of blight and house prices is key for thousands, let alone the threat of compulsory purchase and demolition. Boris Johnson has accused the Prime Minister of using the Commission just “to provide cover for a U-turn on Heathrow” and he continues to fiercely oppose Heathrow expanding.

https://www.airportwatch.org.uk/2013/12/heathrow-residents-to-demand-financial-compensation-for-impact-of-airports-commission-report-on-their-house-prices/