Handing space back to NHSPS that you no longer require for commissioning purposes isn’t just about reducing your void costs. It’s a key moment in how we collectively manage the NHS estate efficiently and reduce the amount of unused space across the system.
That’s where the Vacant Space Handback Scheme and the vacating payment charge come in.
Let’s break it down.
What is a vacating payment?
When an ICB or other commissioning body has declared space that was previously occupied by a commissioned provider to be surplus to their future commissioning requirements and initiates the Vacant Space Handback scheme, we apply a one-off charge to cover some of our costs in managing that space until it’s reused, re-let, or released. This charge helps us:
- Keep the estate financially sustainable
- Avoid long-term voids
- Accelerate the reuse or disposal of space
In short, it’s a tool that supports our broader goal: reducing vacant space and maximising the effective use of our estate.
How much will I be charged?
It depends on the type of property you’re vacating:
|
Property Type |
Vacating Payment |
|
Whole Freehold |
Sum equivalent to 3 months (25%) of annual premises budget |
|
Part Freehold |
Sum equivalent to 6 months (50%) of annual premises budget |
|
Leasehold |
Sum equivalent to 12 months (100%) of annual premises budget |
What makes up a monthly charge?
The vacating payment is based on your monthly accommodation charges, which include:
-
Rent
-
Business Rates
-
Facilities Management (FM) Charges
-
Service Charges
These reflect the real cost of keeping a space operational, safe and compliant, even when it’s empty.
Leasehold? You might get a refund
If you’re handing back part or all of a leasehold property, we charge 12 months. However, if we manage to terminate our headlease early, say, after 5 months, you’ll receive a pro-rata refund for the unused portion. This flexibility helps us act quickly and minimise vacant leasehold space wherever possible.
Why this matters: Reducing vacant space
Every vacated property comes with a cost, not just financial, but operational and environmental too. The Vacant Space Handback scheme:
-
Encourages early planning and collaboration
-
Helps us act faster to repurpose or release space
-
Supports our commitment to minimising voids and maximising value
By applying a consistent and transparent approach, we’re not just managing buildings—we’re actively shaping a smarter, leaner estate.
What is the Vacant Space Handback scheme?
The Vacant Space Handback Scheme allows eligible NHS commissioners to formally hand back space they no longer need. Once accepted, we take on the responsibility for managing and repurposing the space—whether through reletting, disposal, or redevelopment.
This scheme is a powerful tool for reducing vacant space across the NHS estate and ensuring that only space with a clear future need is retained.
Who can apply?
The scheme is open to:
-
Integrated Care Boards (ICBs)
-
NHS England
-
Commissioning Support Units (CSUs)
Unfortunately, the following groups cannot apply directly:
-
Providers and GPs
-
Local Authorities
-
Other Arm’s Length Bodies (ALBs)
-
Commercial tenants
Customers in these categories who are planning to move out of space they occupy will need to give us a heads-up—either by following the notice terms in their lease or, if they don’t have a formal agreement, by sending us an Occupancy Change Notice (OCN). This will prompt your local NHSPS Senior Estates Manager to check in with you to make sure you’re aware that your commissioned provider intends to vacate — so you can decide whether you want to keep the space for future commissioning requirements, or hand it back to us.
Is your space eligible?
To qualify for the scheme, the space must:
-
Be part of a property transferred to NHSPS on 1 April 2013
-
Be legally held by NHSPS
-
Not be a PFI or held by NHSPS under an onerous lease
-
Be marketable, lettable, self-contained, and declared surplus
-
Be vacant at the time of handback and free of commissioner debt
For more information on the criteria, read our Vacant Space Handback Scheme brochure.
We're here to help
If you’re considering handing back surplus space, speak to the Vacant Space team early.
They’ll help you understand whether your surplus space meets the handback policy criteria, your charges, the timelines, and how we can work together to reduce vacant space.
If you make us aware of your intention to hand space back as soon as you your provider vacates, we may be able to take the space back before the regular charges revert to you on expiry of the provider’s notice period.
Contact us
