Help shape Heathrow s proposals for property and noise compensation A public consultation 21 July to 12 October 2014
Foreword Our vision is for Heathrow to be a globally competitive world-class hub for the UK. Growth at Heathrow will provide the international connectivity that supports economic growth and maintains the UK s position as a world economic power. The benefits will be local and national. A third runway will create thousands of new jobs, increase trade and tourism, and boost spending in the wider economy. But we understand that people living around Heathrow have concerns about airport expansion. In developing a third runway at Heathrow we must balance the wider benefits of a successful hub airport with the effects on our local communities. A new runway, built on land beyond the current airport boundary, will have an impact on local homes and businesses. Flight paths for the new runway will expose new people to aircraft noise. That s why we re committed to treating those most affected by our proposals fairly. We ve already said that we ll spend 550m on new noise and property compensation schemes if the Government supports a third runway. And in our submission to the Airports Commission in May, we promised to consult with local communities as we shape our compensation proposals. So now we want to hear your views on the principles behind our compensation and mitigation schemes. Our work so far has been developed in consultation with a panel of local community members. They brought valuable knowledge and feedback to our initial thoughts. We re still at an early stage. We haven t yet decided how any of these schemes should work. We want to hear your views before we make those decisions. We really do want to hear your views on Heathrow s future. I hope you ll take the time to tell us what you think. John Holland-Kaye CEO Heathrow Airport Limited Page 2 Heathrow s public consultation for property and noise compensation
The Airports Commission The Government set up the independent Airports Commission to make recommendations on how best to maintain the UK s status as an international hub for aviation. In December 2013, the Commission included Heathrow on its shortlist of options for providing one additional runway in the South East. Our proposal is one of three shortlisted by the Commission. The other two include the Heathrow Hub proposal, promoted by an independent company not connected with us, to extend Heathrow s northern runway to the west, and a proposal for a second runway at Gatwick Airport. The Commission is also currently considering whether the Mayor of London s proposal to build a new hub airport in the Thames Estuary should be included in that shortlist. In May this year, we submitted revised details of our north west runway proposal to the Commission. Our submission, Taking Britain Further, can be viewed on our website at: heathrow.com/publicconsultation The Commission is now reviewing the various shortlisted options and is anticipated to consult publicly on its assessment of those options in the autumn. The Commission will submit its recommendations to Government in summer 2015. Airports Commission Established (Sept 12) Airports Commission Interim Report (Dec 13) Airports Commission require updated options (May 14) Airports Commission Final Report to Govt (Summer 15) Government Decision The Airports Commission was set up by Government to make independent recommendations on maintaining the UK s status as an international hub for aviation. The Commission will publish its final report in summer 2015. The diagram shows the key stages in the process. Heathrow s public consultation for property and noise compensation Page 3
Our third runway proposal Before we submitted our proposal to the Airports Commission in May, we consulted widely with local communities. We wanted to know what issues mattered most to our neighbours. Based on feedback from that consultation, we improved our proposal. We were able to reduce noise and protect more homes by moving the runway further south, closer to the existing runways. The relocation also protects popular heritage sites and avoids costly works to realign the M4/M25 motorway junction. If the Airports Commission and the Government do support a third runway at Heathrow, we will have to refine our scheme even further as part of any detailed planning application. That, too, would involve further substantial public consultation. Page 4 Heathrow s public consultation for property and noise compensation
West Drayton Sipson Harlington Proposed new runway Colnbrook Cranford Poyle Existing Northern runway Existing Southern runway Stanwell Moor Stanwell Heathrow s public consultation for property and noise compensation Page 5
compensation Our proposal Page 6 Heathrow s public consultation for property and noise compensation
Initial ideas for property and noise compensation In our submission to the Airports Commission in May, we promised to set aside 550m to cover the costs of property and noise compensation if we built a third runway. 300m of this fund will go towards compensation for homes and small businesses bought to make way for the new runway. For anyone whose property is compulsorily purchased, we re proposing to pay: The unblighted market value of the property Plus a 25% above market value home-loss payment All legal costs for moving Stamp duty towards a new property. The rest, 250m, is for noise compensation. We will use it to mitigate the effect of aircraft noise on homes in the highest noise areas and in areas exposed to significant new noise. Noise compensation is a broad term covering three ways to help the people most affected: An offer to buy peoples homes Help with the costs of moving home Noise insulation for people s homes. We haven t yet decided how to format our noisecompensation scheme or how to distribute the available funds. This consultation will help us shape our proposal. Heathrow s public consultation for property and noise compensation Page 7
Heathrow s current noise compensation schemes The Government provides guidance on how airports should manage their noise-mitigation schemes. The guidance sets the level of noise above which airports must offer compensation. It also says that compensation should come in two ways: relocation help for homeowners and sound insulation for houses. The guidance doesn t say how much help an airport should give. One thing the guidance does say is that we must offer more sound insulation to people who suffer an increase in aircraft noise than we would for people who are already subject to noise. This includes all homes newly affected by noise. We already have several schemes in place that meet or exceed Government guidelines. They provide noise compensation to over 40,000 homes around Heathrow. Compensation mostly takes the form of good-quality double glazing and loft insulation in people s homes. We accept that if a third runway is to be built, we ll have to offer an even better noise-compensation scheme. This consultation will help us develop that scheme. The big question is how the available compensation fund should be used. We want to hear what you think makes a fair compensation scheme. Page 8 Heathrow s public consultation for property and noise compensation
About this consultation Community Working Group Before we decide how any property and noisecompensation schemes should work in practice, we want to hear your views. We want to know how you think the available funds would be best used. There are no easy answers. Because the funds are finite, we have to choose the most effective way to distribute them. For example, a scheme that covers a wider area will mean a smaller share of compensation for each household within it. This is your opportunity to say what you think. Your feedback will help us develop the compensation scheme that we would apply if the Government supports a third runway. This consultation is aimed at those communities likely to be most affected by our proposals. That s everyone who ll be exposed to noise or who ll lose their property to make way for an expanded airport. We have notified over 150,000 nearby residents and businesses about this consultation. We re also publicising this consultation through widespread media and online coverage. Publicity will continue throughout the consultation period, 21 July to 12 October 2014. You can also attend a series of public exhibitions in areas near the airport during September and October. For details, see How to take part on page 26. When we consulted on our north west runway proposal earlier this year, we promised to work with neighbours whose properties might be affected by a third runway. We subsequently set up a panel of people from communities around the airport. Between May and July, they took part in a series of working-group sessions. The sessions covered a broad range of topics relating to compensation schemes for properties that would have to make way for the new runway or be affected by aircraft noise. The working group s ideas were invaluable. They helped us understand the issues that need more thought and more consultation before we can develop a fair compensation package. The working group has also had a big influence on the format of this consultation. When we discussed the range of potential compensation schemes, we developed a series of questions on possible approaches. Now we want to consult more widely on these questions. Your comments will help us develop a fair approach and a compensation package that best reflects the thoughts of people who are affected by airport expansion. Heathrow s public consultation for property and noise compensation Page 9
your Have say The following pages provide background on the issues we would like your views on. Please use the consultation response form to provide your answers to these questions. Page 10 Heathrow s public consultation for property and noise compensation
Questions about property compensation Q1 Eligibility for a home-loss payment in the event of a new, third runway at Heathrow In our submission to the Airports Commission in May, we outlined a compensation proposal for residents whose property would be subject to compulsory purchase. Our proposal includes an additional home-loss payment of 25% of the property value. This payment, which exceeds legal obligations for compulsorily purchased properties, compensates for the burden of being compelled to move home. Not everyone whose property is subject to compulsory purchase actually lives in it. We d like your views on whether those who do live in their properties and are therefore losing their homes are the only ones who should qualify for the additional home-loss payment. This means that private landlords would not qualify. It s not a simple choice. A blanket offer of a 25% home-loss payment (to include private landlords and other potential property investors) could keep the local property market active in the intervening years. This would give residents who choose to move early a better opportunity to sell their homes to a wider market to private landlords and others who know that they too would benefit from the home-loss payment. Which of the following statements most closely fits your views: All types of property owners (including private landlords) should qualify for a 25% home-loss payment. Only owner-occupiers (those who live in their properties) should qualify for a 25% home-loss payment. There should be a graduated scale of home-loss payment offering different levels of compensation to different types of property owners. Please use the separate consultation response form to have your say. Heathrow s public consultation for property and noise compensation Page 11
Questions about property compensation Q2 Compensating those who rent their home Our proposals focus on compensation for property owners. But there are also many private tenants living in rented properties in the affected area. They don t own the homes they live in and compulsory purchase could be timed to coincide with the end of each individual tenancy agreement. However, they may still have to bear the cost and disruption of moving home at a time when they hadn t planned to move. Heathrow will enter into a separate dialogue with Local Authorities and other associated housing providers to determine how their property and tenants would be affected and treated. We would like your view on the following question: Should private tenants who are displaced by the building of the new runway be eligible for some form of help in moving home? Please use the separate consultation response form to have your say. Page 12 Heathrow s public consultation for property and noise compensation
Q3 Compensating those living near a new, third runway Properties subject to compulsory purchase are not the only ones affected by airport expansion. A new runway would move the airport boundary closer to many properties that do not qualify for compulsory purchase. These properties may well be part of a noise-compensation scheme. But noise isn t the only factor that might detract from residents quality of life. So we want to know whether you think we should take other factors into account, such as loss of community facilities, the extent to which neighbouring properties have been subject to compulsory purchase, and local effects on property values. We could deal with this by establishing a special proximity zone covering properties that are close to the new airport boundary, but not subject to compulsory purchase. The tricky part is defining the size of such a zone and establishing a fair system for measuring the varying effects on the people and properties within it. Which of the following statements most closely fits your views: Factors such as loss of community facilities and neighbouring properties may be difficult to measure, but they are important. Heathrow should take them into account when compensating people living close to the airport s expanded boundaries. The simplest and fairest method of compensating people living close to the airport s expanded boundaries is to base compensation on noise impacts alone. Please use the separate consultation response form to have your say. Heathrow s public consultation for property and noise compensation Page 13
Questions about noise compensation Q1 A fair approach to noise compensation We believe that residents who are most affected by a new, third runway should be fairly compensated. Whatever compensation scheme we adopt, it must take account of the people who suffer the most noise. We ve been considering the fairest way of assessing the effects of noise and setting appropriate compensation levels. One approach is to use a graduated system that makes compensation proportional to the impact of noise. Since the pot of money available is finite, offering greater compensation to some means that others would receive less, or that fewer people in total may qualify for compensation. The diagram opposite shows how a graduated noise scheme works. Which of the following statements most closely fits your views: The fairest method of noise compensation would be a graduated scheme that offers greater compensation to those who suffer most noise. The fairest method of noise compensation would be a flat scheme that divides compensation equally between those who are affected whatever noise level they actually experience. Please use the separate consultation response form to have your say. Page 14 Heathrow s public consultation for property and noise compensation
Zone 4 Zone 3 Zone 2 A graduated noise-compensation scheme: residents in the inner rings suffer more noise than residents in the outer rings, so they receive more compensation Zone 1 Heathrow Heathrow s public consultation for property and noise compensation Page 15
Questions about noise compensation Q2 Balancing compensation for new and existing noise A third runway at Heathrow will alter aircraft flight patterns. It will change the noise levels currently experienced by local residents. Some will experience more noise, some less. We agree with Government recommendations that noise compensation should reflect the effect on people who suffer increased levels of noise (known as newly affected) as a result of a third runway. We already have schemes to support those affected by noise from our existing runways. Some residents have suggested that anyone who suffers from a level of noise that does not change and may even reduce when a third runway opens should receive the same compensation as someone who is newly affected by the same level of noise. The diagram opposite shows how an existing and newly affected area of noise might relate to each other. Which of the following statements most closely fits your views: People who are already exposed to a certain level of noise should receive less compensation than those who are newly exposed to the same level of noise. People who are already exposed to a certain level of noise should receive the same compensation as those who are newly exposed to the same level of noise. Please use the separate consultation response form to have your say. Page 16 Heathrow s public consultation for property and noise compensation
Some areas will be newly exposed to noise, some areas are already exposed to noise Areas newly exposed to significant noise Third Runway Existing Runways Areas already exposed to significant noise Heathrow s public consultation for property and noise compensation Page 17
Questions about noise compensation Q3 Defining noise-compensation zones A noise-compensation zone is an area that qualifies for compensation. We d like to know your views on how best to draw the boundaries of these zones. One method is to use noise contours lines drawn to connect locations experiencing the same level of noise. Although noise contours are accurate representations of the actual noise, they can produce odd effects. A contour could pass between adjacent properties putting one household in the noise-compensation zone and its neighbour outside. Another method is to create zones based on adjusted versions of the noise contours. The adjustments take account of natural geographic and community boundaries such as rivers and main roads. Adjustments mean that neighbours are treated as equally as possible. They also mean that some properties fall into a compensation zone even though they experience the same or lower levels of noise than properties outside the zone. The diagram opposite shows the difference between noise contours and adjusted noise contours. Which of the following statements most closely fits your views: Noise-compensation zones should be based solely on independently calculated noise contours. Noise-compensation zones should be based broadly on noise contours with adjustments to take account of natural geographic and community boundaries. Please use the separate consultation response form to have your say. Page 18 Heathrow s public consultation for property and noise compensation
Adjusted noise contours take account of communities and geography Noise contours Adjusted noise contours Heathrow s public consultation for property and noise compensation Page 19
Questions about noise compensation Q4 Measuring exposure to noise Measuring aircraft noise and its effects isn t straightforward. Because people respond to aircraft noise in different ways, any definition or measurement of noise may not reflect actual perceptions of noise. Nevertheless, we have to quantify noise to establish an effective noise-compensation scheme. The Government produces annual noise contours for Heathrow. The contours, which are independently measured, take account of the imbalance between east and west-facing take-offs and landings. The contours have a weighting in favour of west-facing flights (towards the predominant wind direction) because they occur roughly twice as often as east-facing flights. Residents tell us that noise contours weighted according to the frequency with which aircraft fly overhead are misleading. They don t reflect people s actual experience of noise on the days when aircraft are overhead. We could adjust for this with a noise contour that replaces proportional weighting with measures of actual noise levels from overhead aircraft. So we want to know whether we should base our compensation scheme on noise contours that (a) account for the proportion of time a house is overflown or (b) reflect the actual noise levels people experience on the days when they are overflown. Which of the following statements most closely fits your views: Compensation should be based on noise contours that reflect the proportion of time people are overflown. Compensation should be based on noise contours that reflect the actual noise levels on a day when people are overflown. Please use the separate consultation response form to have your say. Page 20 Heathrow s public consultation for property and noise compensation
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Questions about noise compensation Q5 Funding compensation at Heathrow Q6 Your suggestions The package of measures that we outlined for noise and property compensation will be privately funded by the airport. We believe that expanding Heathrow will bring significant benefits to the national economy. We are looking to balance these benefits with the effects on local communities. We would like your view on whether there may be other ways to establish additional compensation funds. Should there be other forms of funding to compensate local communities in addition to Heathrow s privately funded schemes? Please use the separate consultation response form to have your say. We really do want to hear your thoughts on compensation schemes. If you have ideas for measures we or others could take to ease the effects of airport expansion on local communities, please let us know. Please use the separate consultation response form to have your say. Page 22 Heathrow s public consultation for property and noise compensation
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happens What next Page 24 Heathrow s public consultation for property and noise compensation
Managing blight Anyone who lives near Heathrow will want to know, sooner rather than later, where they stand. Will their home be affected by airport expansion? Are they likely to hear noise from aircraft on new flight paths? Although our proposals are at an early stage of development and we are a long way from Government support for an answer proposed by the Airports Commission we recognise that our plans may cause uncertainty among our neighbours. As we ve already said, we intend to treat those affected by our proposals fairly. But we can t think about purchasing properties before the Government commits itself to supporting Heathrow s growth and we obtain planning consent for a third runway. Experience shows that purchasing properties too early can increase the effects of what s known as blight. Acting prematurely could harm the prospects of communities and remaining residents in the event that Heathrow does not expand. We believe that our early commitment to generous compensation for anyone whose property will be compulsorily purchased will reduce uncertainty and potential blight. Everyone can continue to buy and sell property knowing that we will honour our commitment to compensation. If the Government does make a policy commitment to support Heathrow s growth, we can begin to move forward. We would then be in a better position to know whether we need to act early to manage individual blight cases before the activation of a formal compensation and mitigation scheme. Heathrow s public consultation for property and noise compensation Page 25
Next steps How to take part We will analyse responses to this consultation and share our findings in late autumn. Your views will help us develop our proposals for noise mitigation and property compensation. Later this year, after we have fully considered everyone s views, we hope to announce the proposals in detail for how we would compensate people if a third runway goes ahead. This will give everyone who s affected certainty about what they can expect, and when. The consultation period runs from 21 July to 12 October 2014. You can take part in the following ways: 1. You can fill in the questionnaire on the Freepost form enclosed with this booklet and post it back to us. 2. You can complete the questionnaire online at: heathrow.com/publicconsultation Our consultation website provides links to further information about Heathrow s current noise schemes. 3. You can visit one of our public exhibitions held across the local area see details opposite. At these events you can meet the Heathrow team and ask questions about noise and property compensation. We ll have copies of the consultation questionnaire that you can complete at the event. Page 26 Heathrow s public consultation for property and noise compensation
Public consultation venues Date Time Town Venue Address Tue 2 Sep 14.00-21.00 Harmondsworth St Mary s Church Hall High Street, Harmondsworth, Middlesex UB7 0AQ Thu 4 Sep 14.00-21.00 Cranford Cranford Baptist Church 1 Firs Drive, Hounslow TW5 9TA Sat 6 Sep 10.00-16.00 Longford Thistle Hotel Bath Road, Longford UB7 0EQ Mon 8 Sep 14.00-21.00 Colnbrook Colnbrook Village Hall Vicarage Way, Colnbrook, Berks SL3 0RF Tue 9 Sep 14.00-21.00 Harlington Harlington Baptist Church 266 High Street, Harlington Middlesex UB3 5DG Thu 11 Sep 14.00-21.00 Stanwell Moor Stanwell Moor Village Hall Horton Road, Stanwell Moor TW19 6AG Sat 13 Sep 10.00-16.00 Windsor Windsor Leisure Centre Stovell Road, Windsor SL4 5JB Mon 15 Sep 14.00-21.00 Langley St Mary s Church Hall St Mary s Church Centre, St Mary s Road, Langley, Slough SL3 7ER Sat 20 Sep 10.00-16.00 Datchet Datchet Village Hall 3 Allen Way, Datchet Village SL3 9HR Tue 23 Sep 14.00-21.00 Hanwell Carnegie Library Cherington Road, Hanwell, London W7 3HL Wed 24 Sep 14.00-21.00 Old Windsor Old Windsor Day Centre 27B Straight Road, Old Windsor, Berks SL4 2RW Sat 27 Sep 10.00-16.00 Hounslow The Paul Robeson Theatre The Treaty Centre, High Street, Hounslow, Middlesex TW3 1ES Tue 30 Sep 14.00-21.00 Brentford St Paul s Church St Paul s Road, Brentford TW8 0PN Wed 1 Oct 14.00-21.00 Sipson Sipson Community Centre Sipson Way, Sipson, Middlesex UB7 0DP Tue 7 Oct 14.00-21.00 Egham St Paul s Church Hythe Centre, Thorpe Road, Egham TW18 3HD Wed 8 Oct 14.00-21.00 Richmond Duke Street Church Quadrant Road, Richmond, Surrey TW9 1DH Thu 9 Oct 14.00-21.00 Twickenham Twickenham Town Hall York House, Richmond Road, Twickenham TW1 3AA Heathrow s public consultation for property and noise compensation Page 27
Contact us By post: Freepost RTES-LRHJ-KXBC Heathrow Community Relations The Compass Centre Nelson Road London Heathrow Airport HOUNSLOW TW6 2GW Online: heathrow.com/localcommunity By telephone: 0800 307 7996 By email: communityrelations@heathrow.com This document is available in other languages and formats on request. heathrow.com Heathrow Airport Limited 2014 NND 0714