News / Funds offered to hasten land sales

NHS trusts have been invited to bid for funding to help make their surplus land more marketable and accelerate sales.

In a letter, health minister Dan Poulter said the money should be used to release NHS surplus land for housing as part of the government programme to provide 100,000 new homes.

In last year’s autumn statement, the chancellor confirmed a total of £290m would be made available to the NHS and other public sector landowners to bring sites suitable for housing to the market.

Dr Poulter said two principle funds would be available to the NHS – a £190m investment fund and an £100m acquisition fund, which will allow the Homes and Communities Agency (HCA) to buy NHS property at market value.

The investment fund can be used to mitigate risks associated with bringing sites to market – for example, asbestos removal or demolition – that should increase the probability of a sale before the end of March 2015. The investment cannot be used to support operational costs or the relocation of existing facilities.

Investment fund loans are recoverable and must be paid back to the HCA at an agreed time, usually within four years of being spent. No interest will be charged and the funding can only be drawn down at the point that costs are incurred.

Dr Poulter said: ‘Rationalisation of the NHS estate and the identification of surplus land that is not used to provide clinical services will produce quality, innovation, productivity and prevention savings to put into frontline care.

‘Identifying and disposing of surplus land will make NHS trusts more efficient, improving their financial stability and safeguarding their future.’