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12/05/2014

Heathrow unveils compensation scheme for third runway

Words: Huw Morris
Heathrow airport

Heathrow Airport is to propose a new compensation scheme for people who would be most disrupted by its expansion.

Around 750 homes would need to be compulsorily purchased to make way for a third runway at Heathrow.
 
In a submission to the Airports Commission this week, Heathrow is proposing compensation of 25 per cent above unblighted market value plus stamp duty costs and all legal fees for buying a new home. For a £250,000 property, owners would receive £312,500 compensation, plus £75,000 stamp duty costs and all legal fees.
 
Compensation for residential compulsory purchase is generally offered at a statutory minimum of 10 per cent above market value.
 
"We are committed to treating those most affected by a third runway fairly," said Heathrow's chief executive Colin Matthews. "Since the previous runway plan was rejected in 2010, we have listened to ideas for how we could improve our proposals."
 
Heathrow is also launching a £550 million fund for noise insulation and residential property compensation if the government supports a third runway. Previous proposals for a third runway had allocated £90 million for noise insulation and compensation.

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