Earls Court Surgery London

Notional Rent London

Maiden Notional Rent Review pays off for this London surgery.

Earls Court Surgery in London had never double-checked their Notional Rent figure with an independent specialist surveyor before but were glad they did. Mr Parameshwaran the practices Accountant contacted GP Surveyors when he became aware of our Notional Rent review service, thinking it wise to obtain a second opinion of the District Valuers (DV) figure.

During an initial consultation, one of our specialist Client Managers talked Mr Parameshwaran through the Notional Rent review service. It was explained that one of our specialist surveyors would visit the property to carry out a full inspection, before undertaking a detailed check of the practices figures against our Notional Rent database. The surveyor would ascertain if the practice were receiving a fair current market rent in comparison with other surgeries in the locality and challenge the District Valuers’ (DVs) opinion if not. Having been happy with the initial consultation, Mr Parameshwaran instructed GP Surveyors to begin Earls Court Surgery’s Notional Rent review.

The premises inspection

Emma Pratt one of GP Surveyors Senior Surveyors was allocated the case and an inspection of the premises organised at a suitable time for the practice. The property was fully measured and photographed, floorplans drawn up, and details of room usage confirmed.

Checking the practices Notional Rent

Emma set to work collating all the information from the inspection and began to compare this against GP Surveyors substantial Notional Rental evidence database. Having compared Earls Court Surgery with premises in and around Earls Court, Emma found there was substantial evidence to support a challenge to the DVs Notional Rent figure.

Negotiations with DV

Emma exchanged the practice’s floorplan, areas and comparable evidence with the DV and began negotiations, regrettably on this occasion the DV did not accept that the practices Notional Rent should be increased.

LDRP and NHS appeals

Owning to the fact that we held a considerable amount of solid comparable evidence the decision was taken to move the case to the Local Dispute Resolution Process (LDRP). Unusually a resolution could not be reached during the LDRP process and GP Surveyors escalated the case to NHS Appeals.

Emma Pratt – Senior Surveyor

“The vast majority of our Notional Rent cases result in a settlement with the DV, but on this rare occasion an agreement could not be reached. As we believed that we had a strong case to support a higher Current Market Rent (CMR) on the property, the case was taken to NHS Appeals for independent determination.”

NHS Appeals duly selected an Independent Advisor to determine the CMR. The Independent Advisor ruled in favour of the practice and that the Notional Rent figure was not in line with current market rents of comparable surgeries.

The result – patience paid off

The result was a fantastic increase of 24.4% above the DVs initial Notional Rent valuation, a result Mr Parameshwaran was delighted with:

Mr Parameshwaran, Earls Court Surgery

“We are very pleased with the efficient, courteous and professional way in which GP Surveyors carried out our Notional Rent Valuation Appeal. They fought hard to win and win they did! A welcome success.”

The increase GP Surveyors secured resulted in a substantial uplift in the practices annual income, and in turn, is highly likely to have boosted the investment value of the property. The increased rental payments were also backdated to the initial review date and paid to the practice as a lump sum.

We hope Earls Court Surgery’s Notional Rent review story has proved useful. We carry out reviews all over the UK and a full range of our Notional Rent case studies can be found here.


Review your practices Notional Rent

GP Surveyors are currently achieving some fantastic increases for our London practices and this body of evidence could directly affect your Notional Rent, if you would like us to check your Notional Rent please contact our team today.

 

Salisbury House Surgery receives huge rent increase

Notional Rent increase

Hear first-hand from Zadie Hartwig (Practice Manager), how GP Surveyors guided her through the Notional Rent review process and managed to obtain the Salisbury House Surgery a 27.78% increase in their Notional Rent.

“The process of a Notional Rent review was completely new to me and I was very daunted by the prospect. In view of this, I sought support from my neighbouring surgeries, a Practice Manager in town recommended GP surveyors. The Practice Manager held GP Surveyors in high regard, having used them previously and had a positive Notional Rent review outcome.

So, what did I have to lose?! I phoned GP Surveyors the next day.

GP Surveyors took the time to explain the Notional Rent review process the NHS England would follow, and the steps GP Surveyors would then take following on from NHS England’s review. Suddenly the process seemed less daunting and I even started to look forward to it!

After NHS England had sent their surveyor over to review the premises, GP Surveyors took over all the paperwork, hassle, and stress. They contacted me a few weeks late and confirmed that they had successfully managed to negotiate a much higher figure than NHS England’s initial figure – I was shocked!

I was then told to sit down…… Paul Harman, my Account Manager, told me that GP Surveyors had not only increased my Notional Rent but also managed to get the increase backdated two years! – I was in shock and lost for words!

I can’t recommend this company highly enough. I have had an excellent experience with this company – they talked me through every aspect of the process, answered all my questions and the end result was more than I was expecting. Well done GP Surveyors – Fantastic work!”

We hope you have found our Salisbury House Surgery case study useful, to see our full range of Notional Rent case studies click here.

Little Park Surgery, Middlesex

Notional Rent Middlesex

Little Park Surgery’s maiden Notional Rent review proves a success

GP Surveyors guided Simon Lovegrove (Premises Manager) and Dr Lynch (Partner) through their practices first Notional Rent review and successfully negotiated the Little Park Surgery in Middlesex a significant increase in their Notional Rent.

Simon explains why the practice chose to contact GP Surveyors: “In the past we have tried to negotiate an increase in our Notional Rent. Having significantly improved the building we were expecting an increase on our last review but having received the figures and after 12 months of trying to negotiate, we were disappointed to have achieved nothing. So we sought specialist help from GP Surveyors to manage the appeal process and we are so glad we did.”

Simon first spoke with one of GP Surveyors highly experienced Client Managers, who explained the Notional Rent review process and fee structure to Simon. As there would be no fee to pay, unless an increase was secured, the practice was assured they had nothing to lose and duly instructed GP Surveyors.

Simon commented: “At the start of the process we were informed that the review and negotiations with the District Valuer may take some time to complete, but we would be kept regularly updated and GP Surveyors would be pushing the process through for us.”

Nathan Young, one of GP Surveyors experienced Valuation Surveyors, was allocated the case and an inspection of the surgery premises was arranged. Once Nathan had carried out a full inspection of the surgery, he compiled his findings and compared the District Valuers (DV) initial Notional Rent valuation with GP Surveyors vast database of comparable evidence. Nathan concluded that there was sufficient evidence for GP Surveyors to challenge the DVs’ initial valuation of the surgery, on the practice’s behalf.

The basis for the case

The surgeries notified Notional Rent figure seemed out of line with the facts prevailing at the practice and GP Surveyors comparable evidence. The surgeries unit rate and car parking rate were lower than expected when compared to the evidence of similar surgeries in the surrounding area. Nathan also found a discrepancy in floor areas, eligible for reimbursement.

Having sent his case, along with supporting evidence to NHS England, Nathan began negotiations with the DV and was able to successfully secure an increase in the surgeries unit rate, car parking rate and reimbursable areas. The overall result was a 7% increase in Notional rent, above the DVs initial valuation. This increase resulted in a great boost to the surgeries’ annual income, which the practice was delighted with.

Dr Lynch commented: “GP Surveyors provided us with regular updates throughout the negotiations, they provide an excellent and independent service for assessing and negotiating Notional Rent with NHS England and the District Valuer. In our case, they successfully negotiated and achieved a significant uplift in our Notional Rent”.  

Simon Lovegrove (Premises Manager) and Dr Lynch (Partner) concluded: “We have no hesitation in recommending GP Surveyors to the primary care market. They are an established company with a comprehensive knowledge of this market. They have the necessary expertise and skills to confidently negotiate in the best interests of practices.”

 

We hope you have found GP Surveyors, Middlesex Notional Rent Review case useful, see our full range of Notional Rent case studies here.

The New to Partnership Payment Scheme (N2PP)

GP Business Rates

The New to Partnership Payment Scheme (N2PP) is a new commitment from the February 2020 ‘Update to the GP Contract agreement 2020/21–2023/24’, forming part of the suite of interlocking GP recruitment and retention initiatives.

Celebrating International Women’s Day

To mark International Women’s Day, GP Surveyors thought we would take a look back over the last 100+ years since women were sanctioned to join the surveying profession. We would like to celebrate the truly remarkable women of surveying who moved boundaries throughout the history of the profession and hear from the modern-day women of surveying about the changes they have witnessed during their careers.

 

Irene BarclayIrene Barclay became the UK’s first female Chartered Surveyor back in 1922, qualifying only 3 years after the removal of the Sex Disqualification (Removal) Act 1919. Irene was truly a trailblazer, dedicating her career to improving living conditions for London’s poor and endeavoring to improve and develop social housing, Irene went onto practice for 50 years, finally retiring in 1972!

If you’d like to find out more about the life and work of Irene Barclay, read the RICS’ fascinating article.

Today the surveying profession is still very much male-oriented, however, times are changing, with many women becoming Chartered and inspiring others to begin their careers. Modern-day female trailblazers include; Amanda Clack (FRICS), who in 2017 became the longest-serving RICS President in 123 years and Louise Brooke-Smith who became the RICS’ first female President in 2014. Signs of progress are further illustrated by RICS’ Global Performance Report 2017-18, that states; 23% of new professionals awarded RICS designations were female and 24% of new candidate enrolments were female.

GP Surveyors are proud to be a progressive company, supporting equal pay and employing a surveying team made up of 50% females. To mark International Women’s day, we would like to celebrate our incredible female surveyors and the work they do.

We asked the team what they enjoyed about the profession and here’s what they said:

Clare Kersey, RICS Chartered Senior Surveyor Clare Kersey - GP Surveyors

‘The experience I have as a mum of two re-entering the world of surveying has been refreshing. I qualified in 2002 and although there were plenty of female surveyors, I found there to be a negative attitude towards flexible working. Fast forward to 2016 when I joined GP Surveyors, having recently returned to the profession following a maternity career break, and the situation could not be more different. I was able to return to a profession I have worked and trained hard for, on terms that facilitate a good work/ life balance. I am also able to do the morning school run, which was important to me.

As a Senior Surveyor, I enjoy helping the team grow in confidence and knowledge. The whole team works so well and closely together and although we uphold a professional standard, the office environment is very relaxed and enjoyable. It is a pleasure to be part of the team at GP Surveyors.’

 

Charlotte Wilkinson, RICS Chartered Senior Surveyor Charlotte Reynolds

‘When I first announced that I was going to embark upon a degree in Real Estate at Sheffield Hallam University many people responded with the question ‘isn’t that a very male-dominated career?’. It was no surprise to me that when I looked around the lecture hall there was only a handful of women and the great majority were men. Historically, surveying has had a reputation for being a male-dominated industry however, from the very start of my career in property I have been fortunate enough to have had the opportunity to work alongside and be guided by some very inspirational women.

Since joining GP Surveyors in 2016 more and more women have joined our team and it’s encouraging to see the changes across the industry. The industry as a whole has embraced flexible working and I hope that this will encourage more inspirational women to seek and maintain a career in property’.

 

Emma Pratt, RICS Chartered Senior Surveyor Emma Pratt - GP Surveyors

‘I didn’t take the typical route into surveying prior to getting into Real Estate I studied Geology at Leeds University which was a male-oriented environment, where there was only a handful of women out of a course of 200. After realising I wanted to begin a career in real estate, I decided to become a surveyor.

I began my life at GP Surveyors back at the start of 2016 where I came in as a graduate and the youngest member of the team. It was no surprise to me that when I initially joined I was the only woman within the surveying team, as it is often thought of as a predominantly male profession.

However, more and more women are becoming part of surveying – take our office for example. Shortly after I joined 3 other female surveyors joined the company. In only 2 and a half years the company is 50/50 male and female which is reflected in the surveying team .

My current role as a surveyor changes on a day-to-day basis where no two days are the same. In our line of work, we work across the whole of the UK which means we get to see a variety of places and people from a variety of backgrounds. I really enjoy the surveying team at GP Surveyors as we are all like-minded individuals.

Barrowford Surgery, Lancashire – Sold

Barrowford Surgery Lancashire For Sale

Barrowford Surgery, Lancashire – SOLD

Barrowford Surgery in Lancashire is now sold. See all our available primary care properties here. To receive GP property alerts please register here.

Bids closed

Barrowford Surgery in Lancashire is a fantastic opportunity to purchase a well maintained, purpose built GP premises in Nelson, Lancashire.

Barrowford Surgery is a delightful, small practice servicing approximately 3,364 patients.

There is one storey of accommodation with both consulting rooms and treatment rooms on the ground floor making the surgery accessible to all. There is a good size car park to the front of the property offering free parking.

The practice currently employs two full-time doctors.

• Passing rent: £24,347 (Review Date: 1 April 2020)
• Full repairing and insuring
• FTE Doctors: 2
• Number of Patients: 3,364
• Car Parking Spaces: 9
• Freehold – subject to a lease (Please email for details)
• Purpose Built
• Constructed 1990

Interested? Contact Rebecca Adams

Interested? Contact Rebecca Adams

Business Manager
0114 281 5850
[email protected]

GP Surveyors services & DVS rent review procedures during COVID-19

surveyors services covid-19

FAQs

GP Surveyors have put together your FAQs regarding our services and the District Valuer Services (DVS) procedures during COVID-19, we hope this helps clarify your practice’s situation. If you have any further questions, please get in touch and the team will be able to assist you.


GP Surveyors services during COVID-19

Are GP Surveyors open?

Rest assured GP Surveyors are still open and the team is available via their usual email addresses and phone numbers.

Our opening times are still 08:30-17:30 and you can contact us on the usual number 0114 281 5850 or send us a message via the website.


Are GP Surveyors carrying out practice inspections?

Yes, GP Surveyors are currently carrying out surgery inspections, assuming appropriate safety measures are in place. To reduce the risk to all parties, we ask that our Surveyors only have one point of contact on-site, and social distancing guidelines can be met at all times. Our Surveyors will wear face masks and gloves throughout their visit to the surgery as a further safeguarding measure for all.

If you have a practice inspection already booked, we will call you to confirm you still wish our Surveyor to attend. If you have already decided you would like to rearrange your inspection please call your Client Manager on their direct dial or our main office number 0114 281 5850, alternatively send us a message via the website.


Can I still appeal my practices Notional Rent?

Contractually your practice has three years to appeal District Valuer Services proposed figure, providing you do not accept the figures. The three years starts from the date your Notional Rental figure letter was issued to you.

Due to the current unprecedented times, we are recommending that once practices receive their CMR6 letter, they send the NHS a holding letter to help safeguard the practice’s ability to appeal.

Please contact us and we will email you the appropriate holding letter for you to forward to the NHS.


Will my practice’s Notional Rent still be reviewed by the District Valuer Services (DVS)?

In short – YES – but expect delays.

DVS in consultation with NHS England has agreed that inspections of Primary Care Premises by DVS have been suspended until further notice (unless essential). However, DVS can and will still produce premises valuations based upon their historic records and where a practice confirms within their CMR forms that there have been no changes to the practice since the previous review.

The DVS / NHS England and NHS improvement revised site inspection policy is available to download here.

You should still expect to receive the DVS’s opinion of value (CMR6 Form) based on your practices previous inspections and where you have submitted your CMR forms requesting a review.

If you have any further questions regards your Notional Rent review, call us on 0114 281 5850 and one of the team will be happy to help.


My practice hasn’t received its CMR1 forms, what should we do?

GP Surveyors have been made aware that NHS England may only be issuing CMR1 forms upon request from practices and that District Valuer Services are only being instructed to produce rental figures once a practice’s CMR1 form has been issued and returned.

In light of this new information, GP Surveyors are recommending that your surgery requests its CMR1 forms to ensure District Valuer Services are instructed and your latest rental review is carried out. We recommend you make your request from your NHS/CCG one to two months before your review date or immediately if your practice is overdue for a rental review.

GP Surveyors team of specialist experts has prepared a quick guide to completing your CMR1 form which we hope will help your practice avoid any common and potentially costly errors.

If you have any further questions regarding your surgeries rental review, CMR1 form or would like help completing your form, just get in touch and one of our team will be happy to help.


I have an ongoing case with GP Surveyors what is the situation?

Rest assured the GP Surveyors team is working hard on your behalf to ensure cases continue to progress and the team will ensure you still receive your latest case updates. You can of course still contact your Client Manager on their direct dial or the main office number: 0114 281 5850.

 


 

If you have any other questions regarding GP Surveyors services or the DVS procedures, during COVID-19 please get in touch and the team will be happy to help – we’re here when you need us.

 

GP Surveyors would like to take this opportunity to wholeheartedly thank you and your practice for the service you deliver to help us all through the COVID-19 outbreak and these challenging times. Stay safe and keep well.

 

Helping the PPE production drive for General Practice

PPE-for-GP-practices

The challenges of acquiring and supplying PPE are headline news and the NHSs shortage very well documented. Speaking to GP practices on a daily basis GP Surveyors understand the struggles GP surgeries are going through to acquire adequate supplies of PPE and have decided to try and help by supporting a fantastic local initiative that is providing protective visors to the NHS.

Many businesses, organisations, and individuals across the UK have mobilised to try and help meet the NHS’s need, whether that is through PPE production, deliveries, or fundraising. A growing cottage industry that has sprung up is the 3-D printing of protective visors, enterprising individuals across the UK are creating thousands of face visors from their own homes to try and help keep key workers safe.

In South Yorkshire, there is one such initiative that GP Surveyors, other local businesses, and many individuals have chosen to support. The initiative in question is 3D printed Face Shields, a Facebook fundraising page that was set up by Alex Southall (pictured) to produce face visors for key workers.

Chris Johnson, GP Surveyors Director:

“The GP Surveyors team has heard first-hand from GP practices about the challenges they are faced with, and the lack of PPE and we wanted to help in any way we could. We found out about Alex’s fantastic initiative through a contact at the Rotherham Round Table and wanted to contribute to help local practices get hold of the protective visors they desperately need.”

One such GP practice that has been helped is East Bank Medical Centre in Sheffield who recently received their protective face visors (pictured). Sharon Turner, Practice Manager said:

“We are very grateful to Alex for his generosity in producing these, much needed protective visors. The visors will help keep my colleagues and our patients safe during these troubling times. Also, a big thanks to GP Surveyors for making this possible.”

Alex first set up his Facebook page with the aim of raising enough money to produce a couple of hundred visors. Alex just wanted to try and make a small contribution and from there funding and orders flooded in, so much so that Alex had to purchase two additional printers to keep up with demand.

Alex says on his Facebook fundraising page: “I’m not making any profit on these, just printing and offering them out for free. This is in response to the global pandemic sweeping across our nation. I am doing my bit to hopefully help with this.”

Alex then went on to partner with the Rotherham Round Table, who purchased three of their own printers, and having been trained up by Alex, are helping in the PPE production drive and fundraising efforts.

Steven Reynard, Rotherham Round Table, said: “It’s a great initiative, the Round Table just had to get involved and help in the efforts to support the local NHS.”

Local businesses have also contributed to helping with Alex’s efforts, including John Brailsford Printers, who donated 400 laminate sheets to help with the creation of the visors.

John Brailsford said: “It is our pleasure to assist Alex with his very worthy efforts in helping the NHS. We were fortunate to have Alex with us on work placement and can see this time has paid off. Our business was not just built on printing services, but our support to our employees and the local community, we’re proud to be a part of Rotherham.”

To date, Alex and his colleague Rikki Bedford have raised enough money to produce nearly 2,000 visors for the NHS, GPs, and keyworkers of South Yorkshire. Starting with just one printer and a will to help, thousands of keyworkers have received visors that keep them safe in these troubled times. Many organisations across South Yorkshire, including Rotherham Hospital and the Sheffield Health and Social Care Trust, have benefited from this wonderful initiative.

Sheffield Health and Social Care Trust wrote to Alex to express her thanks:

“Thank you for the kind supply of visors for our staff… It is an unprecedented time in the NHS and your kindness has allowed staff to be provided with safe and adequate PPE in order to protect them and our patients.”

 

If you’d like to help GP practices and the NHS gain the vital PPE they need or you’re a keyworker in South Yorkshire that requires a protective visor please visit Alex’s  Facebook page: 3D printed Face Shields

 

 

New to Partnership Payment Scheme and practice property considerations

The New to Partnership Payment Scheme (N2PP) is now open for GPs and healthcare professionals taking up partnership roles for the first time. Paul Conlan (Director, GP Surveyors) examines the property matters that may arise as the result of partnership change.

The New to Partnership Payment Scheme

The New to Partnership Payment Scheme or ‘golden hello scheme’ launched on 1 July, had been scheduled to open earlier in 2020 but was postponed due to the COVID-19 pandemic. The scheme offers a payment of £20,000 to health professionals taking up a full-time partnership role in general practice for the first time after 31 March 2020. To support the establishment of new partners a contribution towards on-costs of up to £4,000 is also available, as well as a training fund of up to £3,000, to develop non-clinical partnership skills.

High numbers of practices are expected to utilise the scheme, with no cap on the number of applications that can be accepted from eligible healthcare professionals. NHS England has confirmed the scheme is expected to remain open for two financial years – 2020/21 and 2021/22.

GP Property Advice

Depending upon a practice’s circumstances the incoming new partner and or the existing partners may need independent property advice.

When a new partner joins a practice there may be an opportunity for the individual to buy into the practice property. In such a scenario a partner or partners may wish to sell a percentage of their share or a partner maybe looking to retire and be bought out. Under such circumstances an independent market valuation carried out by a specialist primary care Surveyor is highly advisable for all parties. A specialist market valuation will consist of a Royal Institute of Chartered Surveyors (RICS) Registered Valuer carrying out a full survey of the premises and a ‘Red Book’ RICS valuation of the property. Instructing an experienced specialist will provide all parties with the full confidence an accurate and reliable valuation has been undertaken and the buy-in can be concluded with all parties knowing the exchange price is fair and reasonable.

If the ‘golden hello’ scheme triggers a change in partnership at the practice and the incoming partner does not wish to buy into the property, this will create an uncommon party and in most cases the requirement for a lease. An uncommon party is a GP partner that has retired or left the practice while retaining an ownership share in the property and/or a GP partner that has joined a practice but has no intention of purchasing an ownership share in the property. In this scenario creating a lease to regulate the occupation of the property is prudent.

When putting a lease in place it is essential for all concerned, that suitably experienced representatives are instructed. Initially a Surveyor will draft heads of terms for the lease, as the lease terms adopted will impact upon the rental value and a Solicitor is unqualified to advise on rental value. Once agreed the heads of terms are passed to a Solicitor to draft the lease, which will be left unsigned until NHS approval is obtained.

Where the Surveyor is jointly instructed by the parties, the heads of terms should protect the investment value of the property for the equity owners, whilst simultaneously adopting terms that satisfy the NHS approval process for the non-equity partners. As part of the approval process, the NHS will check that the agreed terms are value for money to the taxpayer, as the lease creates recurring costs that the GP Contractor can seek to recover under the Premises Cost Directions. District Valuer Services (DVS) will provide value for money advice to the NHS on a GP Contractor’s application for financial assistance towards lease costs.

Securing NHS lease approval is often considered the paramount factor for the GP Practice and non-property owners as obtaining NHS lease approval guarantees the practices NHS reimbursements cover their outgoings under the lease, for as long as they provide contracted medical services. A lease also acts as a reference document to rights and obligations, helping avoid costly property disputes between the parties to the lease.

Depending upon a practice’s circumstances a new partner may be asked to sign an existing lease, possibly to avoid a last man standing scenario. Under such circumstances it would be prudent for the individual to seek the independent advice from either or possibly both, a specialist Surveyor and Solicitor. A primary care Surveyor or Solicitor will be able to undertake checks and review the lease, to clarify whether the terms and liabilities are reasonable and acceptable to sign.

 

If you would like expert property advice concerning any issues arising from your surgery utilising the New to Partnership Scheme, such as lease creation, lease reviews or Market Valuations, please contact GP Surveyors and one of our specialist team will be able to advise you.

 

For more information and to apply for the New to Partnership Payment Scheme visit NHS England’s website.

 

GP contract – Summary of changes to the Premises Cost Directions

GP contract premises

After months of negotiations, the update to the 2020/21 GP contract has now been agreed upon. Headline updates include a 4% increase to the global sum, £20,000 golden handshakes to attract GPs into partnership and additional­ funding for PCNs to hire additional clinical staff. GP Surveyors highlight the key changes to the Premises Cost Directions, under the contract and how these could affect your premises.

Premises Improvements

With only half of practices deeming their premises to be fit for purpose (2018 BMA GP Premises Survey), the changes to the Directions bring a welcome boost to practices seeking grants for premises improvements.

  • A key update to the grants policy, now means commissioners can award improvement grants funding up to 100% of the project value, following the removal of the long-standing restrictions.
  • In addition, grant values have been increased and abatement and guaranteed use periods have been reduced.

Whether a practice is considering developing or refurbishing their premises, the most cost-effective way to fund the works can be complex. There are two options available to owner-occupied surgeries looking to fund premises improvement works, NHS funded and self-funded (including borrowing capital). Often, works are funded by a combination of these two options. Explore the options practices have, to fund GP premises improvement works and discover the pitfalls to avoid.

Acquiring land or premises

With the need for many practices to expand and surgeries to be developed, financial constraints have been eased to a small degree.

  • Commissioners will now reimburse VAT on Stamp Duty Land Tax (SDLT) on acquiring land or premises.

Additional noteworthy changes include:

  • Commissioners will reimburse VAT on rent payments
  • Fewer restrictions around grants to assign or surrender a lease
  • More formalised arrangements for third-party use of premises, with protections for the practices and reimbursement of legal expenses
  • Reimbursement of Business Improvement District (BID) levies; and
  • Rights to reclaim overpayments made after the Directions are published.

Housing additional PCN staff

The matter of creating sufficient premises space for the 26,000 additional primary care staff, set to be recruited by 2023/24, was only briefly addressed in the GP contract agreement. The following advice is contained in the Update to the GP contract agreement 2020/21 – 2023/24 document:

  • PCNs will be encouraged to engage now with their community provider partners to agree on any necessary short-term actions.
  • Together they should also start developing a fully joint vision of fit-for-purpose future estate.
  • All parties will work together to make the best use of any new capital funding available to primary care to support general practice and the PCN model.

Further reading

GP Surveyors view on the future of GP premises in Primary Care Networks.

 

Queens Square Surgery, Norfolk

Norfolk Notional Rent Review

A small change makes a big difference – when it comes to notional rent

Lucy spoke to her Client Manager, Paul Harman, for a refresher on just how our Notional Rent review service works. After their chat, Lucy was happy to instruct us, to check Queens Square Surgeries’ Notional Rent figure.

As this was our first Notional Rent review case for the branch surgery, a full inspection of the premises was required. One of our specialist valuation Surveyors was allocated the case. Having completed their inspection, compiled the finding and compared the District Valuers’ initial Notional Rent valuation, with our vast database of evidence. They concluded, there was strong evidence for the surgery to challenge the initial valuation.

The challenge was based on the following factors:

  • Inaccurate floor areas
    As a result of inspecting the property, the surveyor found the first floor had a larger area that was eligible for Notional Rent than that stipulated in the DV’s valuation.
  • Property type – low unit rate
    Queens Square is a purpose-built surgery therefore our surveyor proposed its unit rate be placed in line with comparable premises in the locality.
  • Unit rate per parking space
    A low value had been placed on car parking spaces when compared to surgeries in the surrounding area.

Our surveyor then submitted their report to the DV, outlining the above case including our local comparable evidence. The unit rate of Queens Road Surgery was included in his evidence, as the surgery was an ideal comparable, as it is also a purpose-built surgery and in the same locality. Having received the report and following discussions, the DV realised they’d made a mistake in the initial unit rate valuation and agreed to increase this. The conclusion to the case was, that GP Surveyors were able to successfully negotiate an overall increase of 8.4% above the DV’s initial Notional Rent valuation.

Clare Kersey (Associate Director) explains:

“By visiting the surgery and carrying out a full inspection, our surveyor detected the DV’s small discrepancy in eligible floor areas. Thanks to our vast database of comparable evidence, they were able to support a case for a relatively small increase in the surgeries unit rate and a fairly, significant increase in their car park rate. This case was a very good example of how just a few small details resulted in a significant increase to the practices total notional rent figure.”

This 8.4% increase in Notional Rent, resulted in a boost to the surgery’s annual income and in turn, increased the surgery’s capital value. A result Lucy and the practice partners were very, very pleased with.

 


Review your GP practices Notional Rent

We hope you have found our Norfolk GP practices Notional Rent case useful, see practices case studies from your area here.

If you would like GP Surveyors to carry out a Notional Rent review for your practice, or you have any further questions please contact our team today.