There are a number of reasons why a valuation of GP premises may be required, including the acquisition or disposal of a surgery, partnership changes, the creation of a new lease or raising finance.
Valuing primary care premises is a specialist area and with a team of RICS Registered Valuers active in the sector, Vickery Holman are well placed to service any GP surgery valuation need.
The process begins with a full measured survey of the premises and a chat with the Practice Manager to establish the individual nature of the practice, including the current patient list, Full Time Equivalent GPs and other staff numbers and any recent changes or planned improvements to the surgery, particularly those funded by the NHS.
Referencing documents such as the Partnership Agreement, any third-party leases (to tenants such as onsite pharmacies) and the latest Care Quality Commission report and Notional Rent / Cost Rent assessment of the surgery, the valuer then undertakes full due diligence on the property and prepares an investment valuation of the premises.
Following an assessment of the market rent of the surgery, careful analysis of the rental income stream(s) to the practice is required, including an allowance for any NHS funding related abated rental payments. An appropriate yield is then applied to this income stream, based on the valuer’s expert analysis of appropriate sales evidence of comparable medical premises.
In the provision of our comprehensive valuation reports, valuers here at Vickery Holman use their in-depth sector experience and up-to-date knowledge of RICS and NHS guidance, such as the National Health Service (General Medical Services – Premises Costs) Directions 2024, which recently updated the guidance to NHS England on the provision of premises funding to GP practices. This ensures the client they are receiving an accurate valuation of their surgery, conforming to the highest professional standards.
Need to talk to our Healthcare consultants? We would be delighted to help you. For more information on our Valuations services, please click on our website link.
