Stop Stansted Expansion sets out details of Stansted’s devious attempts to avoid compensation payments from 2000
Stop Stansted Expansion have catalogued the appalling deceit and prevarication used by Stansted Airport, in its attempts to avoid making compensation payments to people affected by airport’s expansion. Work on Phase 2 was started in 1999, to take the airport up to 15 million passengers per year, and claims should then have been possible. But Stansted insisted that no claims could be made until one of the taxiway piers, Echo, was completed. Each year, from 2004 to 2011 the date when the Echo stand’s completion date was pushed further and further back (partly as Stansted had a dramatic fall in passenger numbers in the recession). Finally this April Stansted’s lawyers said ” …1 March 2007 is a relevant date at least in respect of some of the works in paragraph 1.8..” In other words Stansted finally concedes that it had been wrong to use the ‘golden rivet’ ploy to avoid paying compensation. But now Stansted has a new ploy to avoid paying compensation, saying any claim had to be brought within 6 years. The Deputy President of the Lands Tribunal remarked: “So, after years of telling people you can’t claim until the works are complete, you’re now saying Tee-Hee – you’re too late?” Stop Stansted Expansion gave the airport until 31st May to make a public statement reversing this stance – or face a legal challenge. No satisfactory response was received in time from owners, MAG.
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See also the SSE press release on 7.6.2016 here
The Stansted Airport Compensation Scandal
Briefing by Stop Stansted Expansion (SSE)
10 June 2016
http://stopstanstedexpansion.com/documents/SSE_Press_Briefing-10_June_2016.pdf
Historical Background
1986 – Phase 1 of Stansted expansion gets planning approval – 8 mppa capacity.
1991 – Phase 1 completed – includes new terminal, train station etc.
1992 – Payments for house price devaluation become due to local residents under Land Compensation Act – i.e. 12 months after development is completed.
1992 → onwards: Stansted invites compensation claims from local residents and it receives some 1900 claims of which two out of every three are successful. The airport paid the legal and surveyors fees for successful claimants.
1999 – Phase 2 of Stansted expansion gets planning consent – 15mppa capacity.
2002 – Stansted reaches a throughput of 15mppa but refuses to pay the Phase 2 compensation until all the works approved for Phase 2 development are completed. Importantly the Echo cul-de-sac, which soon becomes known as ‘the golden rivet’ has not yet been completed.
2003 – Stansted gets planning consent for 25mppa and still refuses to consider compensation claims because the Echo works are still not completed.
2008 – Stansted gets planning consent for 35mppa and still refuses to consider compensation claims because the Echo works are still not completed.
2016 – Stansted will handle around 25mppa.
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The area where devaluation was found included most of Broxted, Burton End, Great Hallingbury and Little Hallingbury, and parts of Birchanger, Bishop’s Stortford, Elsenham, Hatfield Broad Oak, Hatfield Heath, Takeley and Thaxted. The extent of the devaluation ranged from 2.0% of the value of the home in outlying areas to over 20% of the home value in areas close to the airport.
Stansted has handled over 15mppa every year since 2002, but, in compensation terms, local residents still live next to an airport handling less than 8mppa.
Stansted Airport’s advice to Local Residents
2004
“On land compensation, you will probably recall a presentation to STACC1 on the continued development of Stansted. You are right in saying that we do not now envisage completing works on the [Echo] aprons and taxiways until 2008/2009 and only after that will consideration be given to compensation.”
Mike Clasper, Chief Executive of BAA
7 June 2004
1 STACC = Stansted Airport Consultative Committee
Stansted Airport’s advice to Local Residents
2006
“In response to comments by a Member, it was indicated that some preliminary work on Taxiway Echo stands was underway, but that area would not become fully operational until 2009/10. That would then be the trigger point for land compensation claims.”
Terry Morgan, Stansted Airport Managing Director
26 July 2006
Extract from STACC minutes
Stansted Airport’s advice to Local Residents
2008
“… at present we anticipate that Echo will be completed in 2011/2012. At that time, individuals will be able to submit claims under Part 1 of the Land Compensation Act 1973, demonstrating any diminution in value of their properties arising from the use of the new infrastructure which has been constructed and which forms the “Scheme”.”
Stewart Wingate, Stansted Airport Managing Director
14 November 2008
Letter to Sir Alan Haselhurst MP
Stansted Airport’s advice to Local Residents
2009
“Members noted that the crucial element which would trigger payments was completion of the Echo cul-de-sac. Members were concerned about the time being taken to do this despite it being part of the planning application to increase use to 15 million passengers per annum (mppa). …
STAL management* undertook to consider the points made but indicated that they were very unlikely to agree to make payments unless and until they were legally obliged to do so.”
*David Johnson, Stansted Airport Managing Director
Extract from STACC minutes
28 October 2009
Stansted Airport’s advice to Local Residents
2010
“The Echo Cul de Sac is the location of a number of aircraft stands. The construction of the Cul de Sac is split into a number of phases to provide aircraft stands in line with demand. … The latest forecasts are suggesting that all phases of Echo are due to complete around 2019/20.”
Nick Barton, Stansted Airport Commercial Director
7 June 2010
Letter to local resident in response to his enquiry about compensation
Stansted Airport’s advice to Local Residents
2011
“The first scheme for land compensation followed the opening of the “new” airport in 1991. … A second scheme was identified which includes the completion of Charlie, Delta and Echo culde-sacs together with the outer taxiway. Some of these developments have been completed but as traffic volumes have declined the need for such infrastructure has repeatedly slipped back and so therefore has the completion date of the second scheme. It is the completion date and bringing into use of this asset which triggers the compensation process. …”
Nick Barton, Stansted Airport Managing Director
14 January 2011
Letter to local resident in response to his enquiry about compensation.
2016
Stansted’s lawyers recently conceded that …
“…the evidence suggests that, since the mid-1990’s, STAL were clear and consistent in advising local residents that Part 1 claims could, and should, not be made until the final completion of the public works authorised by its Phase 2 planning permission.”
Submitted to Court by Stansted Airport’s lawyers
April 2016
2016
Stansted’s lawyers now also concede that:
” …1 March 2007 is a relevant date at least in respect of some of the works in paragraph 1.8..”
Submitted to Court by Stansted Airport’s lawyers
April 2016
In other words STAL finally concedes that it had been wrong to use the ‘golden rivet’ ploy to avoid paying compensation
… but they then come up with a new ploy to avoid paying compensation
“Pursuant to Section 9 of the Limitation Act 1980, the Claimants’ right to recover compensation (if any) under Part I of the 1973 Act must be brought within 6 years of the “first claim day”.
Submitted to Court by Stansted Airport’s lawyers
April 2016
Prompting the Deputy President of the Lands Tribunal to remark: “So, after years of telling people you can’t claim until the works are complete, you’re now saying Tee-Hee – you’re too late?”
Stansted’s lawyers then write as follows to a local resident:
“… our client takes the view that the claim submitted by you is now out of time on the basis that, as far as we are aware, no reference to the Upper Tribunal (Lands Chamber) was made by you prior to the expiry of the relevant limitation period.”
Recent letter to local resident from Stansted Airport’s lawyers
At this point SSE decides to give STAL until 31 May to make a public statement reversing this stance – or face a legal challenge.
SSE’s Legal Team
• Paul Stinchcombe QC
• Richard Wold, Barrister
• Nigel Hewitson, Planning Solicitor
…(there are details of the extensive qualifications of this team …. link )
Public Announcement from Stansted Airport
on 9th June 2016
Claims relating to airport works dating from 1999-2007
STAL (Stagnated Airport Lid) recognises the there has been some uncertainty indecent years about the status of compensation claims relating to development works carried out at the airport in the 1999-2007 period.
Having reviewed the matter thoroughly, and in light of two recent legal decisions, STAL has decided to clarify the status of these clams to remove any uncertainty for local residents.
The relevant legislation is complex bu,t broadly, the owner of a residential property, at theme of the works, is entitled to compensation if they can show that the value of their house has been reduced as a d direct result of those works and provided they bring their claim “in time.”
STAL confirms it remains willing to consider claims from qualifying residents indwell, for the time being, treat them as having been made”intake.” This means that residents who believe they may be entitled to compensation can now submit a claim. Of course, residents will still have to show that their claims have legal merit.
STAL will announce more details on the process to be followed shortly, including the specified period for lodging claims which will be of sufficient duration to allow residents to take professional advice. STAL will also be discussing these issues with the Stagnated Airport Consultative Committee.
Stansted Airport Limited
9 June 2016
Impact on Local House Prices
SSE has a considerable quantity of evidence on the movement in house prices in postcode sectors near to around the airport compared to the average movement in house prices for Essex as a whole. 1
SSE compiled this information from quarterly Land Registry statistics over the period 1999-2007, as part of SSE’s evidence to the Stansted G1 Public Inquiry. 2
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1 This was the comparison used by BAA in its 2004-2007 HVGS scheme
2 The full SSE Proof of Evidence submitted to the 2007 Stansted G1 Public Inquiry is on SSE’s website at http://stopstanstedexpansion.com/r1_public_inquiry4.html
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There is a map showing local areas.
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Impact on Local House Prices
1 July 2001- 31 December 2006**
North Uttlesford (CB10 1, CB10 2, CB11 3 and CB11 4)
• Average depreciation found = 7% (£13,000 per house)
(13,593 houses in the 2001 census)
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South Uttlesford (CM6 1, CM6 2, CM6 3, CM22 6, CM22 7, CM24 8)
• Average depreciation found = 25% (£56,000 per house)
(14,796 houses in the 2001 census)
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East Herts Border (CM23 5) = Part of B. Stortford & Birchanger
• Sample size too small to provide reliable data.
**The above is based on official Land Registry statistics from 1 July 2001 to 31 December 2006. SSE produced this analysis for the 2007 Stansted G1 Public Inquiry where its evidence on local house price impacts was unchallenged in cross-examination. However, factors other than the expansion of the airport may have affected house prices over that period and so the above should be viewed as illustrative. Potential claimants should take professional advice.
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http://stopstanstedexpansion.com/documents/SSE_Press_Briefing-10_June_2016.pdf