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Compensation Schemes

People who live in or own property within the areas of land identified in the Airports NPS as being potentially affected by Heathrow Expansion may be entitled to compensation. Read on to find out if you may be affected and what help and support is available to you.

Could your property be affected?  

To expand the airport, we propose to buy land including residential, commercial and agricultural properties. The Airports Commission recommended to the Government that this additional land would need to be acquired, and is referred to as the Compulsory Purchase Zone (CPZ).

This area of land corresponds to the Annex A Boundary included in the Airports National PolicyProperties in the CPZ include those in Longford, parts of Harmondsworth, Sipson, and small numbers in Poyle and Stanwell Moor. People who live in or own property within the CPZ area, as shown on the map below, will be affected by the proposed Heathrow Expansion scheme.

If you live in or own property in the CPZ area your property is likely to be required to build the expanded airport and you may be eligible for assistance through the CPZ enhanced compensation scheme.

Is your property affected by the Wider Property Offer Zone? 

We also recognise that people who own and occupy properties outside the CPZ but within very close proximity to the airport boundary are also affected by our activities. This wider area is known as the Wider Property Offer Zone (WPOZ) and is shown within the purple line on the map above.

We estimate there are approximately 5,500 residential properties within the WPOZ located in parts of Poyle, Colnbrook, Brands Hill, Harlington, Cranford Cross, Harmondsworth and Sipson. Of the 5,500, we estimate there are up to 3,750 eligible residential properties within this zone.

If you own and live in an eligible property in the WPOZ you will have the choice to either remain in your property or sell to Heathrow though the WPOZ enhanced compensation scheme.

In this section you will find more information on:  

  • Enhanced Compensation Offers – Property Bond scheme
  • Compulsory Purchase Zone offer
  • Wider Property Offer Zone offer
  • Property Hardship Scheme
  • Statutory Blight

We also have a Noise Insulation Scheme, which you can find more information on here.

Following the designation by Government of the Airports National Policy Statement, properties falling within the Airports NPS Annex A Boundary may  be entitled to Statutory Blight. More information on this is provided [below].

Enhanced Compensation Offers – Property Bond Scheme

Heathrow has developed an enhanced compensation offer for eligible owner-occupiers of residential, agricultural, or small business premises in the Compulsory Purchase Zone (CPZ) and residential properties in the Wider Property Offer Zone (WPOZ)).

Details of these zones are set out in our detailed property policy documents. Heathrow consulted on these compensation schemes during its public consultation from 17 January to 28 March 2018.  Heathrow is currently in the process of reviewing the feedback received during consultation, and the draft schemes may be subject to further changes.

We will be inviting owner occupiers of residential properties (in the CPZ and WPOZ) and qualifying small businesses (in the CPZ) to sign up to our new property bond scheme.  This scheme commits Heathrow to the purchase of their property under the enhanced compensation offer following the grant of the development consent for Heathrow Expansion and confirmation by Heathrow that it is proceeding with the project.

What would property owners be entitled to through signing up to the Property Bond schemes? 

The enhanced compensation offer provides:

  • the unaffected open market value of the property (excluding development value); plus
  • a home loss payment of 25% of the unaffected open market value of the property (excluding development value); plus
  • stamp duty (where residential) or other costs (where non-residential) associated with the purchase of an equivalent value property; plus
  • reimbursement of reasonable legal fees, moving costs and other disturbance costs.

For agricultural properties, the loss payment would be calculated at 25% of the unaffected open market value of the farmhouse (excluding development value and uncapped), and 10% of the open market value of the land (excluding the farmhouse and development value) capped at £100,000.

For further information about Heathrow’s enhanced compensation policies, please see the “Related Documents” on this page, which were published as part of Heathrow’s consultation and represent Heathrow’s current proposals, subject to any changes required as a result of feedback from the consultation:

Am I eligible?

To be eligible for the enhanced compensation scheme you would need to be:

  • the owner-occupier of a residential property, agricultural property or the owner occupier of a small business premises located within the compulsory purchase zone (the area within the red line on the map above); or
  • the owner-occupier of a residential property located within the wider property offer zone (the area shown within the purple line on the map above); and
  • which you bought or inherited on or before 20 December 2013 – the date the Airports Commission short-listed Heathrow’s north west runway scheme.

This is a summary and you can find more information on the offer and eligibility in our property policies.

For greater detail on the CPZ and WPOZ schemes please expand the sections below:

I'm in the Compulsory Purchase Zone (CPZ)

If you are the owner-occupier of a property or small business in the CPZ please read on.

Homeowners

If you are the owner-occupier of a property within the CPZ you may be eligible for our property compensation offer, which includes:

  • the unaffected market value of the property; plus
  • a home loss payment of 25 per cent of the unaffected market value; plus
  • stamp duty costs for purchase of a replacement property of equivalent value; plus
  • reasonable legal and moving costs.

The ‘unaffected market value’ means the property’s market value ignoring any adverse effect from the northwest runway proposal. So, for a £250,000 property, the homeowner would receive £312,500, plus £10,000 stamp duty costs (at today’s rates) and their reasonable legal fees and moving costs.

If you own a property in the CPZ, that is not eligible for the above Heathrow Compensation scheme, you will be eligible for compensation in accordance with the statutory compensation code.

This is a summary and you can find more information on the offer and eligibility in our property policies.

Please visit our Frequently Asked Questions page for more information about the code and what it means for you or get in touch with our community relations team using the details on our Contact Us page.

Small business premises owners 

If you are the owner of small business premises, within the CPZ, with a rateable value less than £44,200, you could be eligible for the same offer we have set out for owner-occupiers, which includes:

  • the unaffected market value of the property, plus
  • a loss payment being 25% of the unaffected market value, plus
  • stamp duty costs for purchase of a replacement property at an equivalent value, plus
  • reasonable legal fees and moving costs.

This is a summary and you can find more information on the offer and eligibility in our property policies.

If you are the owner of a business premises within the CPZ, with a rateable value greater than £44,200, you will not be eligible for this scheme, but you will be eligible for compensation in accordance with statutory compensation code. Please visit our Frequently Asked Questions page for more information about the code and what it means for you or get in touch with our community relations team using the details on our Contact Us page.

Buying properties

Please be aware that Heathrow will not begin purchasing properties through this scheme until we receive development consent for Heathrow Expansion and we  confirm that we are  to proceed with the project.  Heathrow is currently working towards securing  development consent in 2021.

Residential tenants 

If you are a residential tenant living in the compulsory purchase zone, you will not be eligible for the enhanced compensation offers because you do not own a property which you could sell.

We will compensate tenants if and to the extent that they are entitled to compensation under the statutory compensation code.  This will depend on the nature and terms of their tenancy.

Aside from the statutory compensation code, we are looking at what practical assistance we may be able to provide to affected tenants.

Please visit our Frequently Asked Questions page for more information about the code and what it means for you or get in touch with our community relations team using the details on our Contact Us page.

I'm in the Wider Property Offer Zone (WPOZ)

If you are the owner-occupier of a property or small business in the WPOZ please read on.

Homeowners

Under our proposed scheme eligible owner-occupiers within this wider property offer zone would be offered the same terms as those in the compulsory purchase zone which includes under the bond scheme the commitment to purchase their property for:

  • the unaffected market value of the property; plus
  • a home loss payment of 25 per cent of the unaffected market value; plus
  • stamp duty costs for purchase of a replacement property of equivalent value; plus
  • reasonable legal and moving costs.

The ‘unaffected market value’ means the property’s market value ignoring any adverse effect from the third runway proposals. So, for a £250,000 property, the homeowner would receive £312,500, plus £10,000 stamp duty costs (at today’s rates) and their reasonable legal fees and moving costs.

This is a summary and you can find more information on the offer and eligibility in our property policies.

If you own a property in the wider property offer that is not eligible for the scheme and you want to sell your house to Heathrow, you would be eligible for compensation in accordance with the statutory compensation code. Please visit our Frequently Asked Questions page for more information about the code and what it means for you or get in touch with our community relations team using the details on our Contact Us page.

Small business premises owners and residential tenants

Under Heathrow’s current property polices, small business premises owners and residential tenants in the wider property offer zone are not eligible for the enhanced compensation scheme. Those who are not eligible for the wider property offer may be entitled to compensation in accordance with the statutory compensation code.

More information

For more information about Heathrow’s enhanced compensation policies, please see the following documents which were published as part of Heathrow’s consultation and represent Heathrow’s current proposals, subject to any changes required as a result of feedback from the consultation:

Property Hardship Scheme

Heathrow has established an Interim Property Hardship Scheme which aims to assist property owners who have a ‘compelling need’ to sell their property but have been unable to do so, except at a substantially reduced price, because of the proposals to expand Heathrow, and who, because of this, are facing significant financial hardship.

What would property owners be entitled to under the Hardship scheme? 

Under the Interim Property Hardship Scheme, property owners who can demonstrate that they meet certain eligibility criteria will be able to have their property purchased by Heathrow without any deferral.

Where your property falls within the Airports NPS Annex A Boundary and you meet the Hardship criteria, Heathrow will pay:

  • the unaffected open market value for the property; plus
  • plus an uncapped 25% home loss payment; plus
  • the owner’s reasonable legal fees and disturbance costs; plus
  • an amount equal to the stamp duty land tax which would be payable on a property of equivalent market value to your property.

Where your property falls outside the Airports NPS Annex A Boundary and you meet the Hardship eligibility criteria Heathrow will purchase your property at its unaffected open market value only.

The Interim Property Hardship Scheme was launched in April 2017 and is currently open for applications. Further information about the scheme, including eligibility criteria, levels of compensation available and how to apply are available in our “Interim Property Hardship Scheme Policy” found in the Related Documents section of this page.

Statutory Blight  

The Secretary of State for Transport designated the Airports National Policy Statement (Airports NPS) on 26th June 2018.

This marks an important milestone in the process of creating additional runway capacity for the UK, and it means that property owners within the Airports NPS Annex A Boundary (the area within the red line on the map above) may now be eligible to serve a Statutory Blight Notice asking the Secretary of State for Transport to buy their property.

Full details on Statutory Blight can be found, here.