Hundreds of homes to be demolished to make way for third Heathrow runway
Hundreds of home owners will get compensation from the UK government for 125% of the value of their properties after it was announced that a third runway will be built at Heathrow Airport in London, according to PropertyWire.com.
Parts of some villages will be demolished to make way for the runway which is set to open in 2025, but thousands of owners face being unable to sell as they will not be near enough for the compensation plan but close enough to be affected by noise and pollution.
However, one property expert says it is in opportunity for first-time buyers to get on the housing ladder as prices in some areas close to the new runway will fall considerably. But others face their homes being unsaleable until the exact location of the work is announced.
The government said that a decision on the exact location of the new runway will be the subject of a consultation and parliament will vote on it in about a year’s time. But it is likely to mean that around 750 homes, some dating back to the 17th century in pretty villages will be demolished.
It is thought that half of the village of Harmondsworth will disappear and the other half, including a 600 year old, Grade I listed barn and an 11th Century Church will be metres from the extension to Heathrow airport.
The government confirmed that a compensation packing will be set up to give home owners whose properties will compulsorily be purchased some 125% of the market value of their properties, plus stamp duty and other fees.
Mark Hayward, manging director of the National Association of Estate Agents (NAEA), pointed out that the decision to give the go-ahead to the runway is likely to have a negative impact on house prices in the immediate vicinity of Heathrow.
“However, alongside today’s announcement, the government has also released details of a fresh consultation, while the threat of judicial review still remains high. This means home owners that will be impacted by the extra runway should not rush into making knee jerk decisions, as they have time to assess their options,” he said.
“In addition, the government has confirmed that home owners facing compulsory purchase will receive 125% of full market value for their properties, plus stamp duty, legal fees and moving costs. While a person’s home is much more than bricks and mortar, it is vital that the government honours this commitment to ensure that those impacted are offered some financial security for the years ahead,” he added.
According to Russell Quirk, chief executive officer of eMoov, home owners in Hounslow, Kew, Windsor, Maidenhead and other surrounding areas are likely to see the value of their property blighted as a result of a lengthy construction process and ongoing noise and air pollution.
But he also pointed out that the decision could create London’s first affordable pocket for housing, but not in a way that aspiring London home owners may want. He explained that in the last ten years property prices in Hillingdon, for example, have increased by 77% and they could now see a reduction of at least 20%. He believes homes values in Hounslow could also fall and even further west in Windsor and Maidenhead they could also be severely affected by flight paths.
He believes that even areas such as Richmond, Westminster and Hammersmith and Fulham could see a depreciation in property value due to noise and air pollution.
“No one in their right mind could find a property desirable if that property sees jumbo jets hurtling past at all hours of the day and night, rattling secondary double glazing and leaving the faint aroma of jet fuel lingering in the air,” said Quirk.
“However, home owners 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. Expansion could see house prices in those areas worst affected by the noise and air pollution plummet by as much as 20% as a result, a very realistic expectation given the negative impact noise and air pollution can have to a property’s desirability,” he added.