- No significant rise in land sales by the NHS in 2018-19
- Government expects an average of £660m to be raised annually
- List of largest deals last year
New data suggests there was no significant rise in land sales by the NHS in 2018-19, despite the government relying on an uplift in receipts to fund new investment.
Data published by NHS Digital listed land sale income of £433m last year, compared to a revised figure of £357m for 2017-18.
However, several large sites appear in both years due to payments being phased, with the full amount listed in both years. This means the figures are not immediately comparable. Comparable figures will be available once consolidated accounts for NHS providers are published in the coming weeks.
In committing to meeting Sir Robert Naylor’s recommendation for £10bn of “additional” investment in the NHS estate over five years, the Department of Health and Social Care suggested £3.3bn would be raised from sales of surplus land.
This represents an average of £660m per year. So the NHS Digital figures suggest a significant uplift in receipts is required.
The data lists around 60 sales completed last year, compared to more than 100 in 2017-18. But the average size of the deals appears to be larger.
The biggest sales were again reported by providers in London and the South East. HSJ excluded several deals that also appeared last year.
Largest land sales in 2018-19
| Organisation Name | Site description | Plot land area (ha) | Purchaser | Sale income |
|---|---|---|---|---|
| BARTS HEALTH TRUST | Sites at the Royal London Hospital, Whitechapel, including former outpatients annexe and dental building | 1.11 | Department of Health and Social Care | 77 |
| ROYAL UNITED HOSPITALS BATH NHS FOUNDATION TRUST | Royal United Hospital, Bath | 0.27 | Versant | 19.1 |
| LONDON NORTH WEST HEALTHCARE TRUST | Land at rear of Northwick Park Hospital | 4.1 | Network Homes | 16.1 |
| MAIDSTONE AND TUNBRIDGE WELLS TRUST | Accomodation blocks near Maidstone General Hospital | 1.17 | Kleinwort Benson (Guernsey) Ltd & Borrowdale Nominees Ltd | 12.5 |
| UNIVERSITY COLLEGE LONDON FOUNDATION TRUST | Victorian building on Cleveland Street | 0.2776 | Not Applicable | 11.9 |
| SOUTH WEST LONDON AND ST GEORGE’S MENTAL HEALTH NHS TRUST | Richmond Royal Hospital | 0.184 | RER London | 11.8 |
| ROYAL FREE LONDON FOUNDATION TRUST | Royal National Ear Nose and Throat Hospital | 0.64 | Not stated | 11.3 |
| SOUTH WEST LONDON AND ST GEORGE’S MENTAL HEALTH TRUST | Barnes Hospital | 0.8 | LS Estates | 11.1 |
| EPSOM AND ST HELIER UNIVERSITY HOSPITALS TRUST | Part of Epsom Hospital | 1.0838 | Senior Living Urban (Epsom) Ltd | 9.3 |
| NORTH EAST LONDON FOUNDATION TRUST | Former inpatient facility at Naseberry Court | 1.18 | Not Applicable | 8.1 |
| THE NEWCASTLE UPON TYNE HOSPITALS NHS FOUNDATION TRUST | Campus for ageing and vitality | 10.5 | Newcastle University | 7.5 |
| CAMDEN AND ISLINGTON NHS FOUNDATION TRUST | Former Resource Centre in Tottenham Mews | 0.04 | Central London Commercial Estates Ltd | 7.2 |
| UNIVERSITY HOSPITALS OF DERBY AND BURTON FOUNDATION TRUST | London Road Community Hospital | 8.9 | Nightingale Derbyshire Ltd | 7 |
| KENT AND MEDWAY HS AND SOCIAL CARE PARTNERSHIP TRUST | St Martins Hospital | 5.951 | Homes For England | 6.3 |
| LONDON NORTH WEST HEALTHCARE TRUST | Part of Central Middlesex Hospital | 0.3 | Network Homes Ltd | 6.1 |
| UNIVERSITY HOSPITALS OF LEICESTER TRUST | Glenfield Hospital | 5.28 | Davidsons Developments Ltd | 6 |
| BARTS HEALTH TRUST | Steels Lane Health Centre | 0.34 | Commercially confidential | 5.9 |
| MAIDSTONE AND TUNBRIDGE WELLS TRUST | Accomodation block at Tunbridge Wells Hospital | 0.33 | WGIF(Jersey) Trustee Limited | 5.7 |
| HAMPSHIRE HOSPITALS FOUNDATION TRUST | Old outpatients department at Royal Hampshire County Hospital | 0.5 | University of Winchester | 5.3 |
| ASHFORD AND ST. PETER’S HOSPITALS FOUNDATION TRUST | St Peter’s Hopsital | 3.5 | CALA | 4.3 |
Barts Health Trust, which sold four surplus sites in Whitechapel to the DHSC, said this would “kick-start the development of a cutting edge research campus next to The Royal London Hospital”.
A spokeswoman added: “The £77m deal was based on independent land valuations, and means progress on the life sciences centre is not dependent on selling the sites on the open market.
“While DHSC will now apply for planning permission, the trust will focus on attracting scientists, entrepreneurs and other investors to translate innovative life sciences research into new ways of monitoring, diagnosing and treating health conditions.
“Experts estimate £11bn worth of benefits could be brought to the area by the development, including thousands of jobs. There are also related plans locally to build more than 200 affordable homes, including 168 for local NHS workers.”
Sir Robert told HSJ recently that good progress is being made on several large transactions in the capital, including plans to relocate Moorfield’s Eye Hospital and sell the current site, which is likely to raise hundreds of millions.
Previous years’ data published by NHS Digital showed land sale receipts of £233m in 2016-17, and £250m in 2015-16. But these also appear to feature sites listed in both years.
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