New DHSC guidance on acquiring estate from NHS Property Services Limited

The Department of Health and Social Care has published new guidance (Requesting transfers of NHS property – GOV.UK) under which NHS trusts and foundation trusts can seek to acquire property owned by NHS Property Services Ltd (NHSPS).

The guidance sets out the process and expectations for trusts seeking to transfer land or buildings and is intended to support the ambitions set out in the government’s 10 Year Health Plan around the concept of a neighbourhood health service.

GP practices operating from these premises would become tenants of the acquiring trust which would take over responsibility for property services albeit service provision may stay with NHSPS. The transfer process should bring historic service charge disputes to the fore, as a property cannot be transferred until there is a binding settlement with occupiers for outstanding debts.

Key Points to Note:

• Core service critical clinical infrastructure should be prioritised for transfer with other properties to be considered on a case-by-case basis.
• The intention is to place assets with the organisations delivering care, however, currently transfers will not be permitted to:-
  • ICBs;
  • local authorities;
  • GPs; or
  • organisations that are not distinct legal entity such as those established through contractual or partnership arrangements (e.g. integrated health organisations, provider collaboratives and neighbourhood health providers).
• No transfer will be enacted until there is a binding agreement in place between NHSPS and each of the occupiers of that property for the settlement of any outstanding debt relating to the property.
• The current service provision by NHSPS will continue unless or until the trust makes a new service arrangement. Where NHSPS continues to provide services, these will be documented in an agreement with the trust.
• ICBs will play a co-ordinating role in the expressions of interest process, ensuring that there is local system agreement to the proposed transfers and that there is alignment with local service delivery plans and estates strategies.
• Once initial expressions of interest lists have been compiled and signed off by the ICB board and NHS England regional directors, NHSPS will provide sufficient information so that trusts can develop a business case to take ownership of the properties.
• As trust boards approve their own business cases, ICBs will need to work with the proposed transferees and NHSPS to produce a local system level financial impact assessment.
• The indicative timetable for implementation provides that trusts are to develop business cases in Q1 of 2026/27 with the first transfer schemes to be enacted in Q3.

Contact us

If you are considering expressing your interest in a property transfer or would like advice on options available to you, please contact our experts in our real estate team who will be happy to assist.