HealthCare Property Bulletin
AUTUMN 2011
ARTICLES
Pause - Stop - Rewind
Notional Rent Trends
Investor Opportunties
Imperfections in Dentistry
Care Quality Commission (CQC)
Keeping in line with current and new property legislation
Contact Us
The continued demand by the NHS for quality primary health centres has resulted in our analysis of notional rent appeals and rent reviews, settled on behalf of our clients, continuing to show rental increases, although the rate of rental growth has slowed.
|
One trend we are noticing is that Primary Care Trusts and District Valuers are becoming very prescriptive with PREM 1 forms, and ruling out areas not identified in these forms. This may lead to an increase in the number of surgeries with disparities between rent paid and rent reimbursed, but we are optimistic that PCT’s will allow corrections to the forms to ensure accuracy and the right and fair assessment. On a cautionary note, we are aware of GP’s accepting notional rent assessments without professional advice, in low single figure percentages, and this is having an adverse |
effect on other reviews. There is also the occasional suggestion from the DV/PCT of a zero percent increase, possibly resulting from the NHS need to save revenue. With the exception of very poor quality premises this is rarely justifiable, a fact supported by Third Party determinations. This re-enforces the importance of instructing a specialist healthcare surveyor to consider your notional rent assessment.
|
||
 |
* An initial analysis of our rent review data until December 2010 shows an increase of 11.52%. However data includes four rent reviews over the period which were agreed unusually at increases over 20%, with one review where the previous rent was agreed by a council landlord who had not obtained specialist healthcare advice, showed a very substantial increase of 50.91%. We have adjusted our data to account for these variations, and this demonstrates an increase of 8.77%. | |||
