NHS in move to market based rents
Thu 14th April 2016, 10:57 am
NHS Property Services has begun charging market based rents on its 3,500 properties.
The move means that tenants of NHS Property Services – usually NHS service providers – who previously paid rent to cover the cost of running the buildings, will instead pay a professionally-assessed rent, as well as service charge and a charge for facilities management services.
NHS England and the Department of Health support the move as they claim it should improve awareness among NHS organisations on the true cost of occupation.
John Westwood, director of asset management at NHS Property Services, said: "As Lord Carter found in his report on acute trusts, there are massive savings to be made in the better management of NHS property.
"In the primary care estate, commissioners have been subsidising underused space and poorly located services. This change removes that subsidy between different parts of the NHS. It will undoubtedly free up resources for the NHS and, in many cases, will raise tens of millions for reinvestment."