Historically, the prospect of buying into a GP partnership has been extremely attractive to younger members of the medical profession. Unfortunately, the default assumption that younger members of a practice will be keen to buy into the partnership can no longer be relied upon as a given in all areas of the country. Indeed, even in areas where partnership remains attractive, the changes in the way that the NHS calculates the notional rents payable to practices for their surgeries means that there is a (usually incorrect) perception that the benefits of property investment are no longer attractive.
In some areas of the country, the NHS is actively buying in GP practices in order to address the issues of staff recruitment and retention, creating hubs operating from NHS Foundation Hospitals, whilst in other areas GP partners are facing the issue of finding an attractive means of disposing of their property interests given that younger members of the profession are unwilling to invest personally in the purchase of the practise in the historic way.
There is an active investment market for GP surgeries with funds paying prices based on low yields and therefore high multiples of rent for what is seen as a very secure income. That way the retiring partners can recoup their property investment whilst the practice continues to operate from the same premises without interruption.
If you would like an in-principle discussion about the property issues affecting your practice, feel free to call us and one of our experienced Chartered Surveyors will be happy to have a chat. You can contact us on 0808 169 8881 or by email via firstname.lastname@example.org.