Investigation into NHS Property Services Limited – Transcript

Date: 26 June 2019

NHS Property Services Limited was established in December 2011 to manage, maintain and improve NHS properties and facilities previously owned by strategic health authorities and primary care trusts.

It operates 2,900 properties and has 6,950 tenants, including NHS trusts and GPs.

The number of tenants without formal lease agreements has increased from less than two-thirds when the Service took over, to 70%.

Without leases in place, bills are more likely to be disputed. However, the Service does not have the same powers as a commercial landlord to enforce contracts and charges.

Outstanding debt has almost tripled, to £576 million, and tenants are taking much longer to pay their bills.

In 2018-19, the Service only recovered 58.4p for every £1 it billed. By the end of March 2019, it had written off £110 million.

The Service has successfully sold 410 surplus properties at a value of £347 million. It has invested £447 million in upgrading, maintaining and developing new facilities. It has reduced its facilities management service arrangements from 2,400 to around 50.

We recommend that the Service, the Department and NHS bodies should:

· Require the service and all tenants to agree tenancy details and amounts by the end of 2019;

· Ensure all billing disputes are settled within 90 days; and

· The Service should improve the accuracy of its billing

For more information read our report online www.nao.org.uk