Running a healthcare facility comes with unique challenges, from managing patient care to maintaining a functional and compliant property. Among these challenges, understanding and handling notional rent can be particularly complex if you own the building you provide care in.
If you own a practice or hope to do so in the future, notional rent is something you should be very familiar with. This guide aims to simplify the concept, explain how it works and offer actionable advice to help you navigate the process effectively.
What is notional rent?
Notional rent refers to a reimbursement system primarily used in the healthcare sector to compensate property-owning providers for the use of their premises. Typically, this is for practices that operate under certain public healthcare contracts.
An independent valuation is carried out to determine compensation that ensures building owners receive fair market value for the use of their space while providing essential services. This recognises the costs associated with owning, maintaining and improving these facilities, ensuring patient care can be delivered to the highest possible standards.
Which healthcare facilities will be paid notional rent?
As mentioned, notional rent is given to those who deliver public healthcare under contracts from the likes of NHS England. This means that the following services may receive this reimbursement:
- General practitioners (GPs)
- Health centres
- Specialised clinics
- Dentists
- Physiotherapists
How is notional rent calculated?
A District Valuer typically carries out notional rent calculations. They will consider the following factors to reach a fair figure:
- Size and layout – Larger facilities or those with specialised spaces often attract greater valuations
- Location – Buildings in prime or high-demand areas tend to be priced higher
- Condition – Modern, well-maintained properties with updated features can command better rates
- Market conditions – Current rental values for comparable spaces in the area are a significant benchmark
How often is notional rent reviewed?
Reviews usually take place every three years, although this can vary based on local regulations or agreements. These regular appraisals are essential to reflect changes in property value, market conditions or modifications to the premises.
Owners can proactively prepare for reviews by keeping up-to-date documentation on the building’s condition, usage and recent improvements. Failure to participate actively in this process may result in undervaluation.
Can I challenge my notional rent?
Yes, you can challenge the notional rent if you believe the valuation is inaccurate or fails to reflect the true worth of your property. Common reasons for disputes include overlooked upgrades and incorrect measurements. If you would like to initiate a challenge, you should:
- Contact the relevant authority
- Provide supporting evidence
- Request a formal review
We understand that this may seem intimidating, which is why we are here to help. We offer a number of healthcare property services and have lots of experts ready to guide you through it. Contact us today for tailored advice.
How long do I have to dispute notional rent?
You usually have up to three years from the date it is issued to dispute a reimbursement figure. It is advisable to act as soon as possible to complete the process before the time limit passes.
Get expert advice about notional rent
Navigating the complexities of notional rent can be difficult, especially when dealing with valuations or disputes. Fortunately, we have more than 450 specialists waiting to assist you. We also come highly rated and have 30 offices nationwide, so support should rarely be too far away. Call 0207 022 2380 or fill out the form below to use our services.
