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GPs urged to review rents for pharmacy tenants

GP practices letting space to pharmacies should remember to review their rental income amid rising market values, surveyors have said.

The advice comes as one doctor premises-specialist chartered surveyors firm has seen average rent increases of 49% negotiated between 2012 and 2014.

GPs were also advised that they could action rent reviews ‘retrospectively’, even if they had failed to remember to do regular reviews.

According to GP Surveyors director Chris Johnson, practices could increase their income by anything between £8,000 and £200,000 over a typical 25-year lease.

He said: ‘[This] is a huge figure which would play a significant part in helping GP surgeries across the country who are struggling financially.’

He added: ‘If it was found that the pharmacy was paying too little, the pharmacy would have to pay this shortfall to the practice. This is normally plus interest – depending on the interest provision outlined in the lease.’

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Readers' comments (4)

  • ‘If it was found that the pharmacy was paying too little, the pharmacy would have to pay this shortfall to the practice. This is normally plus interest – depending on the interest provision outlined in the lease.’

    Good luck with that

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  • Whatever is written in the contract should stand, but let's be honest: how would we feel about retrospective rent increases...?

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  • retrospective seems a bit harsh. what if they said. we would have left if u had put the rent up. I think if you don't review it you've missed a trick unfortunately + im not sure how many gp with a pharmacy fall in to the struggling surgeries category lol

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  • "practices could increase their income by anything between £8,000 and £200,000 over a typical 25-year lease".
    Where have these figures been plucked from then?
    Surely it depends on the lease terms and unless Chris Johnson knows the terms of every lease in the country, then how can he suggest that £8k is the minimum that any practice could get.

    Pie in the sky methinks.

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