The NHS Five Year Forward View and the Naylor Report signal significant changes to the NHS estate, specifically to release land from the NHS which is no longer required both to deliver health and care services. It is clear this surplus land could help meet the Government’s housing delivery targets and contribute to meeting the NHS deficit. For example, a landmark devolution deal for London Trusts has received approval in 2017 that will incentivise London Trusts to sell unused land and buildings for the development of more housing. Money raised from the sale of land and buildings will be reinvested in health and care, community and public services.
There are a range of mechanisms in place to support NHS Trusts in releasing assets and to develop a more joined up approach with local councils and other care providers that will ultimately improve the provision of health and care services. Mechanisms include the Sustainable Transformation Programmes (STPs) for the NHS and One Public Estate which are generally led by Local Authorities. These initiatives benefit Trusts by:
Ryhurst’s Strategic Estate Partnerships help NHS Trusts to maximise the value of their assets, including identifying the options available to a Trust where it seeks to dispose of land or buildings no longer required for health provision, as well as the opportunities that might be available to generate increased revenue from assets through development.
Ryhurst provides support by increasing NHS returns on surplus assets by using a variety of tools, alongside a robust and structured approach that includes:
|Site Options Appraisal||Partner Engagement and Market Testing||Managing the Disposal|
Ryhurst uses market knowledge and experience, carries out soft market testing exercises with local and national developers to gain insight into the best route to market and through gaining planning permission for a particular site.
Options might include:
Ryhurst has identified options delivering returns ranging from a single initial offer from an interested party to over four times that amount through a development option. This example is illustrative of the significant difference in return that can be achieved through the proactive marketing and selling of surplus land.