Guidance

Requesting transfers of NHS property

Published 29 January 2026

Introduction 

This guidance supports the voluntary transfer of properties from NHS Property Services Ltd (NHSPS) to NHS trusts and foundation trusts. It is for NHS England regional estates and finance leads, integrated care boards (ICBs) and trusts.

As part of the NHS reforms introduced in 2013, the land and property assets of the former primary care trusts were either:

• transferred to trusts
• vested in the NHS property companies, namely NHSPS and Community Health Partnerships (CHPs)

The guidance sets out the basis on which trusts may request transfers of NHSPS owned property. It is intended to support local level decision-making and delivery, productivity and the wider ambitions set out in the government’s 10 Year Health Plan.

By placing appropriate assets with the organisations delivering care and ensuring strategic alignment through ICBs, the transfer policy becomes an important part of the 10 Year Health Plan’s localisation agenda. This helps to accelerate the shift to neighbourhood‑level, integrated, preventative care while maximising value for money from the NHS estate.

Principles of estates management

The following principles (in line with Health Building Note 00-08), which underpin the 2013 transfer arrangements, will continue to apply.

Protecting assets and maintaining future flexibility 

Ownership arrangements should:

• ensure that relevant estate is available for the provision of NHS services
• not prevent future changes in the delivery of services and the chosen provider

Ensuring efficiency

Properties should be placed with the owner who has the best incentive to use them most effectively and invest in their development.

Supporting the provision of safe buildings which are fit for purpose

The estate in which health and social care is provided must be safe, secure and fit for purpose.

Ensuring value for money

Surplus properties and those that are likely to have only a short remaining operational life should be identified and made available for disposal within an appropriate timeframe.

Observing effective estate management

NHS estate should be managed effectively, both from a strategic and operational perspective (in accordance with Health Building Note 00-08), including:

• compliance with statutory inspection obligations
• the proper documentation of third-party occupiers
• proper cost management
• use of the estate as an enabler for effective, high quality service delivery and modernisation

Scope

Only transfers to trusts are in the scope of this policy. Trust owned subsidiaries are not permitted transferees but receiving trusts may transfer property to a wholly owned subsidiary in accordance with NHS England guidance on forming or changing a subsidiary.

ICBs and trusts should prioritise ‘core’ service critical clinical infrastructure for transfer, but other properties within the NHSPS portfolio may be considered on a case-by-case basis.

Property and recipients out of scope

CHP-owned property is out of scope of this policy. CHP is developing a structured, co-ordinated and phased approach to lease expiries under NHS local improvement finance trust schemes and will engage directly with ICBs and local systems to provide guidance and support.

Although they are permitted transferees under the powers the Department of Health and Social Care (DHSC) will use to enact transfers, ICBs are not currently in scope of this policy.

Transfers can only be made to a distinct legal entity. Other organisational forms, established through contractual or partnership arrangements (such as integrated health organisations, provider collaboratives and neighbourhood health providers) are not in scope. This may be revisited as legal circumstances allow.

Transfers to local authorities and general practices are not permitted transferees under the powers DHSC will use to enact the transfers.

Services

The current service provision by NHSPS will continue unless or until the trust makes a new service arrangement. Where NHSPS continues to provide services, these will be documented in an agreement with the trust. Related contracts are expected to transfer with the property unless otherwise agreed (and terminated at the point of transfer).

Importantly, legal obligations under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) for any affected members of staff must be appropriately managed.

Assets eligible for transfer

NHSPS is responsible for managing approximately 2,500 properties, of which it holds the freehold for about two-thirds of its estate. The remainder is held through a combination of leasehold, licence and private finance initiative agreements.

Where NHSPS does not own the freehold, to assign a lease to a new head tenant without the express permission of the landlord and to ensure the transfer of relevant property related contracts (for both freehold and leasehold assets), the property transfers must be made using a transfer scheme (or schemes) under section 302 of the Health and Social Care Act 2012. This allows specified subsequent transfer schemes of property previously transferred under section 300(1) of the Health and Social Care Act 2012.

The use of this legal route excludes new NHSPS headleases, renewals and freehold acquisitions concluded after 1 April 2013 which may be enacted by exception through normal conveyancing processes. This also applies to properties subsequently transferred by trusts to NHSPS at the direction of DHSC under the 2013 transfer scheme provisions.

Through their integrated care system infrastructure strategies ICBs have categorised all of the buildings in their systems, including NHSPS properties, into core, flex and tail properties.

Core properties

Core properties are buildings that are fit to deliver modern, joined-up healthcare and will continue to deliver services in the long term. Core properties in NHSPS ownership should be considered for voluntary transfer to trusts. Where a trust is not the sole occupier of a property, or does not occupy it at all, it must have the support of the local ICB to the proposed transfer.

Flex properties

Flex properties are buildings which are suitable for now but may not be appropriate for future models of care. Flex properties in NHSPS ownership should also be considered and may be transferred to trusts subject to an investment plan to bring it to core. Alternatively, there should be a plan to vacate and dispose of flex properties as tail estate through NHSPS.

Tail properties

Tail properties are buildings that do not support current models of care or are poorly located and should be disposed of. Tail properties under NHSPS ownership are excluded from the scope of this policy, to manage its disposal on behalf of the NHS.

Property recategorisation

If ICBs wish to recategorise a property in NHSPS ownership during this process because the opportunity to manage that property would have a positive impact, this should be agreed with NHS England regional estates and finance leads and signed off by DHSC.

Transfer process

Identification of eligible properties

ICBs will play a co-ordinating role in the expressions of interest process, ensuring that there is local system agreement to the proposed transfers and that there is alignment with local service delivery plans and estates strategies. NHS England will oversee this process at a regional level.

NHS England regional estates leads will share full lists of NHSPS owned properties directly with the respective estates planning leads in the ICB area.

ICBs are the organisations responsible for planning local NHS services, with NHS England regions as regional system managers. They will jointly oversee a local process across their systems to identify the most appropriate future arrangements for NHSPS owned estate in their areas. ICBs can choose to delegate responsibility for running the process to another local system lead if they or the NHS England region still sign off the proposals.

Local system leads should reflect on the principles outlined above regarding core, flex and tail properties when collating initial expressions of interest lists, as determined by their respective:

• infrastructure strategies
• future service strategies
• patient use and patient type
• capacity and capability of the receiving trusts

NHS England regional estates leads and regional directors of finance, as regional system managers, will be expected to approve the proposals. In so doing they will need to satisfy themselves that the local system lead has identified the most appropriate transferee and that decisions are consistent with the guidance in this document.

Business case development

Once initial expressions of interest lists have been compiled and signed off by the ICB board and NHS England regional directors, NHSPS will provide sufficient information so that trusts can develop a business case to take ownership of the properties. The scope of the NHSPS information package has been agreed with DHSC and NHS England.

Trusts in NHS Oversight Framework (NOF) segments 1 and 2 will then be expected to self-assess against a business case checklist (to be provided) and obtain board approval to receive the properties. Trusts in NOF segments 3 or 4 may, with the support of the local ICB, submit a business case for approval by the ICB board and NHS England regional director.

As trust boards approve their own business cases, ICBs will need to work with the proposed transferees to produce a local system level financial impact assessment. NHS England regional finance leads should consider the collated financial impact assessments and assess overall affordability.

NHSPS will produce a corresponding financial impact assessment for all the proposed transfers. DHSC will ensure that overall group impacts are considered and seek ministerial approval, noting that there will be no additional funding made available beyond existing agreed system budgets.

Review of eligible transfers

DHSC will expect to receive and review copies of all relevant documentation before enacting any transfer. This documentation will include:

• trust board minutes
• business case checklist
• letters of support
• confirmation that debt settlement or agreements and service contracts are in place

We invite ICBs to work with local systems and engage with trusts to provide expressions of interest. We also welcome queries on the proposed policy and will seek to clarify these ahead of the formal transfer window opening.

Each ICB area and trust will move at its own pace and will work to agree an achievable schedule of transfers with both NHS England and NHSPS. This will enable effective resource planning and TUPE considerations across a portfolio of properties. 

DHSC will enact transfer schemes in batches as trust business cases receive internal approvals, and ministerial approval is achieved.

Timetable

An indicative timetable for implementation is set out below.

By 31 March 2026

1. NHS England to share property lists with ICBs.

2. ICBs to work with local systems to provisionally agree a list of property for transfer to trusts (expression of interest lists).

3. NHS England regional directors, on the recommendation of regional estates and finance leads, to agree provisional expression of interest lists.

4. NHS England leads to submit expression of interest lists to NHSPS.

Quarter 1 2026 to 2027

5. NHSPS to provide agreed information pack for the proposed properties.

6. Trusts to develop business case and seek board approval for transfers.

Quarter 2 2026 to 2027

7. ICBs to collate financial impact assessments for trust approved transfers and NHSPS to provide own data.

8. NHS England regional leads to review and assess system affordability.

9. DHSC to review all relevant materials and confirm proposed transfers.

Quarter 3 onwards

10. First transfer schemes enacted.

Begin process again from step 6 in line with the agreed schedule.

Terms and form of transfer

In the case of freeholds or long leaseholds, transfers will be made at the net book value shown in NHSPS’ accounts at the point of transfer. It is envisaged that this will be accounted for as a transfer of function. More guidance regarding the accounting treatment for these assets will be provided during the expressions of interest period.

To retain the integrity of the estate, in most cases the entire title will be transferred. In exceptions where a split of title ownership is proposed, the assets must be capable of separate beneficial occupation.

The receiving trust will become landlord to any third-party occupiers and will be required to accept existing terms of occupation (or to agree but not impose new terms) for the continued occupation of any existing occupiers. Existing or new terms should be documented in an appropriate occupancy agreement.

All transfers will require a commitment to maintaining future flexibility and availability for commissioned services.

No transfer will be enacted until there is a binding agreement in place between NHSPS and each of the occupiers of that property for the settlement of any outstanding debt relating to the property. The applicant trust will be held responsible for any failure to meet the terms of such an agreement by any occupier and therefore should be party to all such agreements. A template debt agreement letter will be provided by NHSPS if required during the transfer process.

All liabilities, indemnities, guarantees or other of NHSPS’s obligations relating to the estate are transferred to the recipient body where possible. The recipient trust will indemnify NHSPS for any liabilities, indemnities, guarantees or obligations which cannot be transferred.

Examples of the above obligations include any:

• outsourced contracts for estates and facilities management services and the cost of works associated with the buildings, unless terminated prior to transfer
• liability to provide some sort of benefit to a tenant (such as a subsidised rent) or undertake some works
• ongoing litigation in respect of the premises
• obligations to a superior landlord under a head lease or other agreement or licence (such as dilapidations)
• indemnities in third party supplier contracts (for example where a supplier has been indemnified against cost increases arising from Agenda for Change (AfC) pay rate increases)

Specific legal advice (to be incurred at each party’s own expense) may be required in connection with the treatment of some of the contracts and liabilities to be transferred or indemnified.

Properties will transfer in their current condition. All responsibility for compliance will transfer with the property.

The transferee may be required to take on the remainder of any contracts let by NHSPS to third parties to provide facilities management or other services on the site, or indemnify NHSPS against any termination costs where transfer is not possible.

On transfers where NHSPS has already opted to tax a property, the recipient may be liable for unrecoverable VAT because of the transfer. NHSPS will provide further information on properties that are currently opted to tax, but trusts should take their own professional advice in these circumstances.

Staff transfers

There may be TUPE implications if any employees are assigned to a property to be transferred. This could include third party employees. NHSPS and the relevant trust will need to conduct a TUPE analysis to determine the position in each case. If TUPE applies, the assigned employees will transfer into the relevant trust and all employment related rights, powers, duties and liabilities will transfer with them. Transfers will only take place once any disputes concerning the application of TUPE are resolved. The parties will cooperate to reach an agreement if necessary.

The trust will need to consider the pension position of the transferring employees and decide if there are any associated costs in relation to pension provision which the trust will be liable for following the transfer. 

There are legal obligations if TUPE applies on information and consultation which need to be adhered to by both parties. Organisations employing NHS staff also have clear obligations when it comes to consulting their workforce over service change, and in any tendering or business transfer processes. Consultation with staff representatives should be based on the principles set out in AfC. Transferring NHSPS employees may have AfC terms or NHSPS terms and conditions of employment which will transfer. Both parties will comply with their legal obligations in respect of any TUPE transfer situation.

Next steps

ICBs should begin to engage with local systems and feedback any points of clarification to DHSC at property.transfers@dhsc.gov.uk

DHSC will, through relevant NHS England communications channels, share the following supporting documents:

• property transfer business case checklist (to be completed)
• transfer scheme provisions (for information)
• property information framework (for information)
• financial impact assessment template (to be completed)
• guidance on accounting treatment (for information)
• debt agreement letter template (for information)