Heathrow
to stop plans for third runway
In response to the new Government's 'Coalition Agreement',
Heathrow Airport announced that it will stop work
on the planning application for a third runway.
The company also plans to stop buying properties
in Sipson, after a period of notice. In line with
assurances given to local residents in 2009, Heathrow
will continue to consider buying properties which
have been issued with a bond under its long-term
property market support (PMSB) scheme¹ until
22 June 2010.
Colin Matthews, BAA's chief executive officer, said:
"We recognise the importance of government
policy in a matter as significant and controversial
as runway capacity.
"The policy intentions of the new government
are clear and it is no longer appropriate for us
to purchase properties. Equally important is our
intention to stand behind our commitment made to
provide time for those local residents who wish
to sell their properties to us, to do so.
"We introduced the current scheme to assist
homeowners faced with an extended period of uncertainty.
Today, we will meet with the local community and
its representatives to discuss the new situation.
"Heathrow plays an important role for the UK
and supports thousands of jobs. We continue to believe
that new capacity would strengthen the UK's trading
links with the global markets on which our economy
and our competitiveness depend."
¹The
Heathrow Airport Property Market Support Bond
• The Property Market Support Bond scheme
was introduced by BAA in 2005 to address the issue
of blight.
• The scheme provides home-owners with a transferable
bond that provides local people with the confidence
to buy and sell property in the area at unblighted
prices (see below for terms). In the event that
BAA applies for planning permission to build a runway,
the bond would require BAA to buy the property at
unblighted prices.
• In October 2009, BAA announced that it would
offer to buy properties with bonds obtained under
PMSB scheme to reduce the uncertainty faced by residents
wishing to sell their property (subject to eligibility).
• Under this voluntary offer, homeowners could
ask BAA to purchase their property under the same
terms and conditions as the PMSB scheme at a price
which is index-linked to June 2002 Greater London
property prices. BAA also reimbursed property owners
for their removal costs, legal costs and stamp duty
equivalent to the value of their property when they
sell to BAA.
• There would be an additional home-loss payment,
equivalent to 10% of the property's value, which
would only be made if planning permission were granted
for a runway
