Notional Rent myths exposed

Working for as many GP practices as we do, we’ve come across lots situations where practice staff are confused about their rights and entitlements under the Notional Rent reimbursement scheme. This article aims to dispel some of the myths we’ve come across over the years:

Myth 1 - Time limit placed on disputing the new figure at the latest review

I have recently had my three year Notional Rent review. The PCT have written to me with the new figure and say that I need to sign and return the form if I accept. If I don’t agree with the valuation I must let them know within six weeks. However, if I don’t sign and don’t let them know I disagree, they will assume I accept and I will be paid the new figure provided by the District Valuer.

FACT. Under the Premises Cost Directions 2004, GPs have three years from the date of the valuation, or the date the figure is provided by the PCT (whichever is later) to challenge the review figure, as long as the Doctor hasn’t signed to accept the figure. Many PCTs have developed their own guidance to set timeframes for the Doctors to work within, however, they do not fully reflect the rights and entitlements allowed to GPs under the Premises Cost Directions. It is therefore recommended that once you have received your latest Notional Rent figure that you seek advice from a specialist surveyor.

Myth 2 - Notional Rent reimbursement for new space following an extension to the surgery premises

I’ve recently built a small extension to the rear of my surgery out of my own funds. I didn’t seek PCT approval before doing so, however, I’ve got a good relationship with them, and so I know that I’ll be able to receive Notional Rent reimbursement for the new additional space.

FACT. The PCT are well within their rights to refuse to pay Notional Rent reimbursement for the new space if they were not made aware of the new extension and did not approve the scheme. It is therefore mandatory that before starting with any work for a new extension that the PCT have approved the scheme and agreed the Notional Rent funding. For larger schemes where funding is provided in whole or part by the PCT, there may be an abatement placed on the funding received for a period of 10 years after the scheme is complete. The details of this will be agreed with the PCT during negotiations over the funding levels and the scheme being proposed.

Myth 3 - Decrease in Notional Rent

I have just received my latest Notional Rent figure and I’ve noticed that the figure has been decreased since my last review. I’m confused as I didn’t think this could happen.

FACT. In rare cases Doctors can experience a reduction in Notional Rent. This typically happens for three reasons. The first is if improvement works have taken place at the surgery which have been partially funded by the PCT. Although the Notional Rent for the existing non-modified areas will not be affected, the areas where the works have taken place can be subject to an abatement based the percentage of funding provided. This means that the practice may not receive 100% of the funding for those areas for a period of 10 years. The second reason Notional Rent may be reduced is if there is market evidence which suggests the rents should be lower. The District Valuer will draw on a range of comparable evidence when providing their opinion of value and if other evidence suggests a lower value should be used, then Notional Rent could be reduced. The third reason is if factual errors have been identified with previous valuations these may be corrected by the District Valuer in the latest valuation. This could include factors such as floor-space measurements or room usage. GP Surveyors always recommended that new notional rent assessments are checked by a specialist.

GP Surveyors advise that GP practices should always consult a specialist Surveyor with regards to their Notional Rent reimbursement if they have any queries.

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