How Heathrow’s third runway has affected house prices:values in compensation zone have fallen behind the rest of Hillingdon borough

New research reveals house prices in the Heathrow expansion zone have long lagged behind the rest of London.

While homeowners living in the Heathrow expansion zone are due to receive 25 per cent more than the "unblighted" value of their properties under the compensation scheme, years of uncertainty about the airport plans have hit house values hard.

A report by Countrywide reveals house prices in the proposed compensation zones have long lagged behind the rest of London.

They have risen a third slower than in the rest of Hillingdon borough, with homes currently valued at an average of £260,000, well below the London average. Even with the 25 per cent compensation payment raising the amount to £325,000, this will still leave owners more than £100,000 short of some of the most affordable homes in the capital.

"Twelve years ago homeowners around Heathrow moved on average every 14 years, while today the figure is 21 years, the longest on record. Homeowners who have sold, have done so against a backdrop of uncertainty, without any compensation," says Fionnuala Earley, Countrywide's chief economist. 

Around 15 per cent of homeowners who sold in the compensation scheme area this year did so for less than the amount they paid for their homes, compared to less than two per cent in other parts of Hillingdon.

The compensation scheme is expected to cost £1.5 billion, 75 per cent more than when the idea was floated in 2002, thanks to rising house prices and limited new housing being built in the intervening 13 years.

Under the current proposals, about 4,500 home owners - over half of whom bought before the plans were put forward - will be offered the chance to sell their homes to the airport with a 25 increase on its value, while stamp duty, legal fees and removal costs will also be paid.

The scheme applies to everyone in the compulsory purchase area whenever they bought their home, and anyone who bought in the compensation scheme area before December 2013. 

Affected homeowners

 

 

Towns within the compulsory purchase

area:

Harmondsworth, Longford
Towns within the compensation scheme area: Colnbrook, Poyle, Sipson, Harlington
Towns out the compensation scheme area but within a mile of the boundary: Cranford, Horton, Langley, Iver, West Drayton, part of Hayes

 

 

Those who live beyond the compensation scheme area are not entitled to renumeration, even though their property values are likely to be affected and residents will inevitably be faced with increased air and noise pollution.

"Homeowners have been screaming out for an affordable part of the capital and the decision to place a third runway at Heathrow may have inadvertently provided that, but not as they would have wished," says founder of eMoov.co.uk, Russell Quirk.

"A fall in value of 20 per cent is a very realistic expectation given the negative impact noise and air pollution can have to a property’s desirability.”

Local residents who set up campaigning group Stop Heathrow Expansion continue to fight plans for the third runway.


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