Healthcare Properties Required - Find Suitable UK Property for Healthcare Operators

Healthcare Properties Required by Medical Providers, Care Operators and Healthcare Investors - A Practical Guide to Leasing, Selling and Preparing Specialist Property

When healthcare properties are required, finding the right building is about much more than location and floor space. Healthcare operators need premises that can support their intended services, meet appropriate regulatory and building requirements and provide a practical environment for patients, residents, staff and visitors.

For landlords and property owners, this creates opportunities to lease or sell suitable buildings to healthcare operators, care providers, medical businesses and specialist investors. Properties can range from existing healthcare facilities to former care homes, medical centres, clinics, nursing facilities and larger buildings with potential for conversion.

Fraser Bond can help owners assess healthcare property opportunities, prepare buildings for the market and identify suitable commercial options.

What Are Healthcare Properties?

Healthcare property can cover a broad range of specialist real estate.

Depending on the intended use, healthcare properties required may include:

• Care homes

• Nursing homes

• Medical centres

• GP surgeries

• Dental practices

• Clinics

• Rehabilitation centres

• Treatment facilities

• Diagnostic centres

• Specialist healthcare accommodation

• Mental health facilities

• Day-care facilities

• Former healthcare properties

• Large buildings suitable for conversion

The requirements can vary significantly depending on the operator and the services delivered.

A building suitable for a residential care provider may be completely unsuitable for a diagnostic clinic, while a medical practice may have very different requirements from a rehabilitation provider.

What Healthcare Operators Look For

Healthcare operators typically assess the entire property rather than simply its size.

Potentially important considerations include:

• Location

• Floor area

• Internal layout

• Number of rooms

• Consultation or treatment rooms

• Bedrooms where residential care is involved

• Toilets and bathrooms

• Accessibility

• Reception and waiting areas

• Staff facilities

• Storage

• Parking

• Heating and ventilation

• Electrical systems

• Fire safety

• Security

• Public transport

• Proximity to relevant services

CQC guidance states that premises used by registered providers must be suitable for their intended purpose, properly maintained and appropriately located. It also highlights factors such as sufficient facilities, accessibility, parking and access to public transport.

This makes early property assessment important when marketing a building to healthcare operators.

Existing Healthcare Properties

An existing healthcare facility can be attractive because the building may already have features designed around medical or care use.

Depending on the property, this could include:

• Treatment rooms

• Consultation rooms

• Reception areas

• Waiting rooms

• Accessible facilities

• Specialist equipment areas

• Staff rooms

• Patient facilities

• Clinical infrastructure

However, an existing healthcare use should not be treated as a guarantee that every future healthcare service can operate from the property.

The proposed service, planning position, building condition and regulatory requirements should all be reviewed before a transaction is completed.

Former Healthcare Properties

Former healthcare properties can provide opportunities for operators and investors.

A vacant medical centre, former nursing facility or closed care property may have a layout that can be adapted for another healthcare use.

Before marketing such a property, an owner should establish:

• Previous use

• Current lawful use

• Planning position

• Building condition

• Fire safety position

• Accessibility

• Electrical and heating systems

• Existing services and infrastructure

• Required refurbishment

• Any restrictions affecting future use

The property's previous healthcare use can be useful background information, but it should not replace proper planning and technical due diligence.

Large Properties Suitable for Healthcare Conversion

Some healthcare operators may consider properties that have never previously been used for healthcare.

A large commercial building, former hotel, residential property or other substantial premises could potentially attract interest where its layout, location and physical characteristics are suitable.

For example, an investor might identify a large building in West London with multiple rooms, parking and good transport connections. A healthcare operator could potentially consider the building for a specialist service, subject to the necessary planning, building and regulatory requirements.

The potential use should be established before substantial conversion works are undertaken.

Planning and Healthcare Property

Planning is an important consideration when a property is being considered for healthcare use.

The existing lawful use and proposed service can affect whether planning permission or another form of consent is required.

Different healthcare and care uses can also have different planning characteristics, so owners should avoid assuming that a property can automatically be used for any healthcare purpose simply because it has previously accommodated patients or residents.

Where a change of use is proposed, the relevant local planning authority should be consulted.

Building regulations should also be considered separately. CQC guidance notes that building regulations approval may be required where a property's use is changed for business or institutional purposes, including examples such as hospitals and nursing homes.

CQC and Healthcare Properties

CQC regulation is relevant to many health and adult social care services in England, although not every healthcare-related property or business is regulated in the same way.

CQC states that providers may need to register where they provide regulated health or adult social care activities, and carrying on a regulated activity without registration is an offence.

Importantly, it is the legal entity carrying on the regulated activity that must register, rather than the property itself.

This distinction is important for property owners. Owning or leasing a healthcare building does not by itself make the property owner the regulated healthcare provider.

The operator's proposed service should therefore be established before determining which regulatory requirements apply.

Healthcare Property Requirements for Care Providers

Care homes and residential healthcare facilities have additional property considerations.

CQC identifies care homes as locations where people can live as their main or sole residence while receiving care or treatment.

For care home applications, CQC currently requires additional supporting information including items such as a business plan and forecast, evidence of legal occupancy, fire risk assessment, floor plan and gas and electrical safety certificates.

Planning evidence can also be required. CQC guidance states that planning permission should confirm that the premises are legally authorised for use as a care home, or appropriate confirmation should be provided where permission is not required.

For property owners, this demonstrates why planning and technical information should be considered early when marketing a building to a care operator.

Leasing Healthcare Property

Many healthcare operators may prefer to lease rather than purchase premises.

A healthcare property lease can need careful consideration of:

• Lease length

• Rent

• Rent reviews

• Repairs

• Maintenance

• Insurance

• Alterations

• Refurbishment

• Compliance responsibilities

• Assignment

• Subletting

• Break clauses

• Reinstatement

The operator may also require consent to adapt the premises for its specific service.

For example, a clinic may require internal reconfiguration, while a residential healthcare operator could require significant accessibility, fire safety or bathroom improvements.

Selling Healthcare Property

Owners may alternatively decide to sell their healthcare property.

Potential buyers can include:

• Healthcare operators

• Care companies

• Medical businesses

• Specialist investors

• Property developers

• Healthcare property funds

• Existing healthcare groups

The property's location, condition, planning position, existing use and redevelopment potential can all influence its appeal.

A specialist marketing strategy can help expose the property to buyers who understand healthcare real estate rather than relying solely on the general residential or commercial market.

Refurbishing Healthcare Property

Owners should be careful about undertaking major refurbishment before identifying the likely occupier.

Different healthcare businesses can have very different requirements.

Potential works could include:

• Accessibility improvements

• Additional bathrooms

• Treatment rooms

• Reception areas

• Waiting areas

• Fire safety upgrades

• Electrical works

• Heating and ventilation

• Plumbing

• Internal reconfiguration

• Security improvements

• External works

The most effective approach is often to understand the target operator's requirements first and then determine which works are commercially worthwhile.

Due Diligence on Healthcare Operators

Finding a healthcare operator interested in a property is only the beginning.

A landlord should consider the prospective occupier's:

• Company history

• Financial position

• Existing operations

• Management experience

• Relevant regulatory status

• Business plan

• Insurance

• References

• Proposed use

• Refurbishment requirements

• Lease requirements

Where CQC registration is relevant, the operator should understand the applicable regulated activities and registration requirements before commencing operations.

The CQC registration process also requires providers to demonstrate that premises and services can operate lawfully and meet relevant requirements.

Healthcare Properties Required in London and the UK

Healthcare property requirements vary between locations.

A medical operator searching for a clinic in Central London may have very different requirements from a care provider looking for a residential facility in North London.

Location can influence:

• Accessibility

• Public transport

• Parking

• Patient convenience

• Proximity to hospitals

• Local population

• Availability of suitable staff

• Nearby complementary services

For property owners, identifying the likely healthcare occupier before marketing can help determine which aspects of the building should be emphasised.

How to Market a Healthcare Property

A healthcare property should be marketed with accurate and useful information.

This can include:

• Location

• Floor area

• Number of rooms

• Existing use

• Planning position

• Accessibility

• Parking

• Building condition

• Previous healthcare use

• Available equipment, if applicable

• Lease or sale terms

• Refurbishment potential

• Availability

Clear information allows healthcare operators to determine quickly whether the property fits their requirements.

How Fraser Bond Can Help

Fraser Bond can assist property owners, investors and healthcare operators with specialist property requirements across the UK.

For owners with healthcare properties required by operators, this can include assessing the building, identifying potential uses, advising on refurbishment and construction requirements, preparing the property for marketing, identifying suitable occupiers and supporting lease or sale negotiations.

For an owner with a former clinic, care facility, nursing property, medical centre or large building with healthcare potential, the right strategy depends on the property's existing use, condition, location and realistic future options.

Fraser Bond can help assess those factors and position the property for the most appropriate healthcare opportunity.