With services looking to shift into communities and a growing focus on prevention, how space is used and what kind of space is needed will change.
To make the right, long-term decisions, you need to look at a multitude of factors to understand the property and community landscape. We do this by looking at demand - what space you need, and supply - what space you have.
Gathering this data will give you the insights you need to find the right space for your services. However, 36%* of NHS estate leaders say they don’t have the capacity to assess how their space is being used.
Following on from part one in the series about setting yourself up for success, in this blog, you’ll learn about the demand and supply factors you need to consider, and why this is such a crucial step in the optimisation process.
What is space demand?
The demand for space refers to how much and what type of space you’ll need to deliver your healthcare services, both now and in the future.
These are the sorts of factors you might need to consider in determining your demand:
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Budget – What can you afford in terms of your estate running costs?
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Service requirements – Different services need different types of space. Understand the practical needs of each service and translate these into a space requirement (consider factors including activity data and the location, size and type of space required).
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Existing space utilisation – Have you reviewed how the services are currently delivered and how they use their existing space?
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Policy priorities – Current and emerging National programmes such as Neighbourhood Health Centres may be a key driver.
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ICS Infrastructure and other Strategies – Your demand will be influenced by many factors including workforce plans, clinical strategies and commissioning intentions. This may be tricky as 41%* of estate leaders said there was a lack of joined up commissioning and space strategy.
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Place-based needs – Local partnerships and regeneration plans can influence demand. Involve NHS, local government, the voluntary sector and other local organisations to jointly plan and address health inequalities.
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Population change – Future demand may shift based on population change and new developments. Use town planning policy information, public health data and tools like SHAPE to inform your view.
Watch the video to hear directly from me about what we mean by demand and supply in estate optimisation.
What is property supply?
Property supply refers to the quantity and quality of your properties and the space available. Assessing this can help you build a full profile of your property and/or estate to fully understand how to optimise it.
Indeed, 55%* of estate leaders told us that the condition or configuration of their estate, or lease flexibility, is their biggest challenge when it comes to optimising space. You should consider:
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Operation and cost – Gather information on running costs, including for any leasehold property. Can services afford to operate there long-term?
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Condition and compliance – Is the building in good shape? Does it meet NHS standards? If not, is it worth the cost to improve it?
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Size and flexibility – Assess whether the floor space fits your healthcare needs and look beyond your current property in its current state. Could it be reconfigured, extended, or adapted to work better?
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Location – Is the building in the right place for the population it serves? Think about if it’s accessible, safe, and well-connected.
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Neighbouring services – Speak to other local health wellbeing and local authority service providers nearby. Could you share space or collaborate?
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Vacant or underused space – Review vacant space and whether you have space that isn’t being used to its full potential? Utilisation monitoring can help you spot opportunities.
So, how do I conduct this assessment?
In my next blog, I’ll share some top tips to helping you review these factors. To help you make the best data-backed, long-term decisions.
Looking for more guidance?
Our NHS Estate Optimisation Guide is packed with expert advice, practical tools and real-world examples to help optimise your estate.
*That’s what we learnt from our Space Optimisation Survey Feb-March 2025 from 21 leaders from across the NHS.
