As a Practice Manager or GP, you will be aware that in recent times the Department of Health have instigated major changes to procurement and style of premises. However, the funding is often elusive especially when you want to undertake your own project and there is a danger of GPs being sucked into projects led by the PCT or LIFT Co which are not always to their benefit.
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Rent Review Analysis |
When selecting a surveyor to act for you, it is essential to ensure that you appoint a specialist medical surveyor, regularly undertaking work in the healthcare sector. We continue to monitor our results and our latest figures below are based on the analysis of 92 rent reviews that we have settled on behalf of our clients over the last 3 years, and we are pleased to report that these continue to show rental increases over this recessionary period, although the rate of rental growth is slowing.. While rents for the 3 year period 2005-08 show an average increase on review of 14.37%, the rate of increase slowed to 11.75% for the period 2006-09. (Four major firms of surveyors supporting the Primary Care Premises Forum reported an increase for the same period of 10.82%, our figures are therefore similar, although slightly ahead). The increase on our rent review data until December 2010 actually shows an increase of 13.81%. However our data includes five rent reviews over the period, which was agreed at increases over 30% with one review showing a very substantial increase of 50.91%. We note that the previous rent was agreed by a Council Landlord who had not obtained specialist healthcare advice on the market rent. We have adjusted our average rent increase to account for these variations, and this now presently demonstrates an increase of 9.69%. Typically we find that rent reviews that are agreed more quickly, produce figures which show an increase of +1% against reviews which take longer to agree, and so the most recent figures will tend to reduce slightly as more data from reviews that are being fought harder, becomes available. While we are aware of GP’s accepting notional rent assessments in low single figure percentages and some PCT’s are suggesting, zero percent increase, this does not follow the results of our analysis of the data, and re-enforces the importance of instructing a specialist such as Aitchison Raffety to consider your rent on review for you. Make sure you get the most out of your existing premises where Aitchison Raffety will advise you on Notional Rent Reviews and Appeals, provide loan security and partnership valuations, give advice on extension and refurbishment. |