Property disposals
When a site is declared surplus to NHS needs, we use our transactions expertise to sell it, generating best value – financial and social – for the NHS. This creates a more efficient NHS estate, generating vital capital to reinvest in the NHS (enabling excellent patient care), and releases public land for new use including housing and community use.
We also handle property acquisitions where there is a need for new Primary Care premises, identifying suitable options for health commissioners and negotiating with commercial landlords and developers, to ensure every patient can get the care they need in the best space and place for them.
So far, through our disposals programme, we have:
562
properties sold
£502m
raised for the NHS through disposal of unwanted assets
8,023
new housing units delivered via release of surplus NHS land
Why we dispose of surplus NHS property
As pressure on the NHS increases there is more need than ever to run its estate as efficiently as possible, disposing of surplus land and generating additional revenue where possible to ensure a fit for purpose NHS now and in the future. There is significant cost involved in holding vacant and underutilised estate.
Therefore a proactive approach to managing vacant property can achieve significant savings of taxpayers’ money for running unwanted assets and generates new revenue to reinvest in the NHS estate, either creating new state-of-the-art facilities or optimising existing properties to enable excellent patient care.
How we dispose of surplus NHS property
The decision on whether a property is surplus to NHS requirements is made by the health commissioners and clinicians who use the property – which can be clinical and non-clinical (we have a dedicated National Office Programme to rationalise and optimise the NHS office portfolio). Once the decision has been made by the customer, NHS Property Services will act to dispose of the property.
Our disposal process is both open and transparent; we aim to sell properties for best value, to generate the vital capital the NHS needs, as well as support government targets on releasing public land for housing. Properties are first listed on the Property Information Mapping Service (ePIMS) website, which allows other public-sector bodies to purchase it before they are put onto the open market.
We consider a range of criteria to determine what entails the best value for a site during a transaction. These considerations include, but are not limited to, level of sales proceeds for reinvestment in the NHS, viability of purchaser’s plans, town planning and stakeholder considerations.
Your guide to property disposals
In this guide we take you through the key stages of a property disposal, sharing our best practice approach to ensure maximum value for the NHS.
From identifying a disposal opportunity, to confirming surplus status, to due diligence and de-risking, to marketing and sale - all whilst working with our NHS and public sector partners.
Case study: selling a surplus site for £43 million, and saving £500,000 per annum in running costs
St George’s Hospital, Hornchurch, was announced surplus and vacated in 2016. To maximise the site’s value, we ran extensive due diligence and submitted outline planning applications for residential use, securing permission for 290 housing units including 15% affordable. With this we were able to sell the site for £43 million which has been reinvested in the NHS.
Property disposals beyond the clinical estate
NHS Property Services has a dedicated team responsible for reviewing opportunities relating to offices, including consolidating services and disposing of surplus office space to create a more efficient office estate.
Learn more about our National Office Programme and approach to smarter working.
Want to know more?
To find out more about how we can help you, contact our Customer Service Centre.
