Property prices in the London boroughs surrounding the new Heathrow runway could fall.
Heathrow has announced it will be compensating property owners who are impacted by the new runway development.
Around 750 properties in Harmondsworth and Longford have already been earmarked for demolition once the airport acquires the land through a compulsory purchase order.
Heathrow’s compensation offer to those affected by the third runway includes a home loss payment of 25% of the unaffected market value, stamp duty costs of replacement property and reasonable legal and moving costs.
Plans for the new third Heathrow runway
Speaking to Development Finance Today, Adam Challis, head of residential research at JLL, said the development would be a boost to the UK economy.
Nonetheless, he warned of the impact the new runway could have on surrounding house prices.
“There will be some negative impact on house prices in the surrounding areas.
“Nicer areas could also see a negative impact.
“However, we shouldn’t lose sight of the importance the development would have on the local and national economy.”
Meanwhile, Bret Jackson of Finance 4 Business added: “The decision to award Heathrow a new runway is likely to have an impact on the surrounding area.
“For example, Hounslow and Hillingdon could see a potential drop of up to 20% in the value of their properties.