An improved £550 million compensation scheme has been unveiled by Heathrow for residents who will be affected if a third runway is built.
Around 750 homes would need to be compulsorily purchased to provide space for a third runway at the airport.
Heathrow is proposing compensation of 25% above un-blighted market value plus stamp duty costs and all legal fees in relation to purchasing a new home.
For a £250,000 property, homeowners would receive £312,500 compensation, plus £7,500 stamp duty costs and any legal fees.
This proposal is more generous than previously proposed for a third runway and for most other infrastructure projects, Heathrow claims.
Compensation for residential compulsory purchase is generally offered at a statutory minimum of 10% above market value.
Heathrow is announcing the creation of a total fund of £550m for noise insulation and residential property compensation if Government supports a third runway.
The package is to be included in revised proposals to be submitted to Airports Commission this week.
The fund would cover the cost of providing new noise insulation and compensation for residential properties as well as for community buildings such as schools.
The airport has previously committed that anyone experiencing a significant increase in noise will be offered free noise insulation.
Heathrow described the new fund is a “major step” up from existing schemes – where £30 million has been spent over the last 20 years – and from previous proposals for a third runway which allocated £90 million for noise insulation and compensation.
The airport is to work with a panel of community representatives to develop plans for how the fund should be distributed.
Heathrow start a public consultation this summer on more detailed proposals for noise insulation and residential property compensation.
The airport will also work with local councils as it develops more detailed plans.
Chief executive Colin Matthews said: “We are committed to treating those most affected by a third runway fairly. Since the previous runway plan was rejected in 2010 we have listened to ideas for how we could improve our proposals.
“People have told us that we should provide more generous compensation and go further in insulating homes against noise.
“We recognise that the expansion of Heathrow deserves an exceptional compensation scheme. That’s why we’re going further than statutory schemes or government guidance.
“People will receive fair compensation in the event that Heathrow expansion goes ahead.”
Options shortlisted by the Airports Commission include creating a third runway at Heathrow, extending the northern runway to the west or a second runway at Gatwick.