Heathrow updates local residents

24 May 2010

In response to the new Government's 'Coalition Agreement', Heathrow Airport today announces 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."

Further information from:

Heathrow Airport Press Office, 020 8745 7224

– Ends –

Notes to Editors:

¹Heathrow 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.