NHS Property Services announces vacant space scheme to cut NHS estate costs

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  • NHS Property Services announces vacant space scheme to cut NHS estate costs

    NHS Property Services announces vacant space scheme to cut NHS estate costs

    Monday, 04 September 2017 15:42
  • New GP premises lease agreement announced

    New GP premises lease agreement announced

    Sunday, 05 June 2016 23:20
  • New guidance to support patient participation groups published

    New guidance to support patient participation groups published

    Monday, 16 May 2016 13:17

a empty medical room imageSeptember 4 2017

A new NHS scheme will help commissioners to cut the cost of empty space in their buildings that is no longer needed for clinical services.

 NHS Property Services’ new Vacant Space Handback Scheme will allow commissioners to pass the liability for eligible vacant space back to NHS Property Services (NHSPS). “The company will then use its expertise to re-use the space via re-letting, disposal or development to generate much-needed funds for reinvestment in the NHS.”

It is estimated costs associated with vacant space are over £10 million a year on the NHSPS estate alone. To qualify for the scheme, space identified by commissioners must have been transferred to NHSPS as part of the 2013 health reforms and be:

  • a separable and lettable self-contained unit above 100 sqm
  • declared surplus to requirements by commissioners
  • vacant and free of debt
  • not a PFI
  • in a property in which NHS Property Services has a legal interest.

“Handing back the vacant space also needs to be in line with the commissioner’s ongoing strategic estate plans,” said NHSPS. “If a property is eligible for handback, NHS Property Services takes on its future costs, following a one-off final payment. The payment is:

  • six months’ accommodation costs for freeholds/long leaseholds, or three months if the building has been vacant since April 1 2016
  • 12 months’ accommodation costs for all other leaseholds, or six months if the building has been vacant since 1 April 2016.”

John Westwood, Director of Asset Management at NHSPS, said: “This is an example of how we are applying commercial property expertise for the benefit of the NHS. We know that commissioners don’t want to be spending their money on empty space, and now we can help them avoid some of those costs. This scheme will free up more of their budgets for frontline care.

“We can then use our property knowledge to put the space back into use as soon as possible, maximising the value of the NHS estate.”

Link:
NHS Property Services announcement   
NHS Property Services Vacant Space Handback 

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