Heathrow Expansion – What It Means for Businesses and Investors

The Heathrow expansion isn’t just about homes – it will reshape local commercial property markets. Shops, offices, warehouses, and investment properties around Heathrow face disruption, relocation, or compulsory purchase. For business owners and landlords, the stakes are high: you need to protect both the property asset and the business operating from it.

Voluntary Schemes

Heathrow Airport Limited has introduced discretionary schemes to give owners a degree of certainty before compulsory acquisition is finalised.

· Hardship Scheme – For business owners or landlords who must sell due to pressing financial or personal reasons.

· Voluntary Purchase Scheme – In certain defined zones, commercial properties may be purchased at unaffected value.

· Early Negotiated Sales – Heathrow, through its advisers (CBRE), may approach businesses and investors directly to agree acquisitions ahead of statutory powers.

For some, these schemes provide an early exit and reduce risk, but they may not capture the full value of disturbance or business interruption losses.

Statutory Schemes

If a CPO is confirmed, statutory compensation rights apply. These are broader for businesses than for homeowners.

· Market Value – The property must be acquired at its unaffected market value.

· Basic Loss Payment – 7.5% of the market value for landlords and investors, subject to a cap.

· Disturbance Compensation – Covers relocation costs, professional fees, and business disruption (fit-out costs for new premises, removal of plant and machinery, temporary loss of profits).

· Severance & Injurious Affection – If only part of your site is acquired, you may claim for the reduction in value of the remainder.

These claims can be technical, often requiring detailed valuation evidence, cash flow analysis, and records of business disruption.

How Olden Property Supports Businesses & Investors

· Valuation of commercial and investment property on a Red Book basis, considering rents, yields, and unaffected comparables.

· Analysis of disturbance claims including relocation, refitting, and lost profits.

· Representation in negotiations with Heathrow’s advisers to secure robust settlements.

· Expert guidance if disputes proceed to the Lands Chamber (Upper Tribunal).

Key Questions for Business Owners & Investors

· Should I negotiate an early exit or wait for statutory protection?

· How are business disturbance losses calculated and evidenced?

· Am I entitled to a Basic Loss Payment as a landlord?

· What if only part of my site is taken – how is the rest valued?

· Who pays my professional fees?

Next Steps

The Heathrow expansion is a complex process with significant financial implications. Getting the right advice early ensures you don’t leave value behind.

Contact Olden Property today to discuss your business or investment property and safeguard your position.