Hot Topic Highlight - RICS Professional Standard Valuation of Medical Centres and Surgery Premises (3rd Edition)
- Jen Lemen
- Jul 22
- 4 min read
Updated: Jul 29
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What is this blog about?
In this week’s blog, we look at the new RICS Professional Standard Valuation of Medical Centres and Surgery Premises (3rd Edition). This replaces the previous Guidance Note 2nd Edition (published in 2010).
As a Professional Standard, this is essential knowledge for any valuers involved in the valuation of this specific asset type. It does not, however, apply to valuations carried out under statutory provisions or of private healthcare properties, e.g., nursing or care homes.
You can read the full guidance on the RICS website.
When is the Professional Standard effective from?
1 August 2025.
What does the Professional Standard say about the NHS framework and structure for primary care premises?
The Professional Statement initially discusses various types of primary care premises. These are defined under the NHS framework to include GP contractors, non-GP services, primary care premises and new, extended or refurbished premises.
It then moves on to cover the primary care policy of the Department of Health & Social Care, NHS Local Improvement Finance Trust (LIFT), General Medical Services (GMS) contractor premises costs and other NHS controls over rent reimbursement.
What else does the Professional Standard cover?
The Professional Standard covers the following topics:
British Medical Association guidance
Sustainability and ESG
Valuations for partnership purposes, primarily applying to GP surgeries
Valuations for loan security purposes
Valuations of investment properties
Valuations of LIFT schemes
Design & specification in the context of relevant legislation and NHS policy
Co-located pharmacies
What does the Professional Standard say about valuation basics?
The appropriate basis of value will usually be Market Value, as defined in VPS 2 of the Red Book Global 2025.
Specific considerations in this context include:
Likelihood of continued use in the short, medium and long term
Compliance with design guidance and impact on value
Obsolescence
Comparable rental evidence and analysis
Top up supplements
Capital input and legal charges
Restricted use
Potential availability of rent reimbursement through the NHS, although no account should be taken of individual contractual arrangements, e.g., actual Cost Rent
What does the Professional Standard say about measurement?
Valuers should apply the RICS Code of Measuring Practice (6th Edition) for this asset type. This represents a departure from IPMS All Buildings.
The two primary measurement bases are Gross Internal Area (GIA) (used when calculating rent reimbursement by PCOs in England and when analysing NHS LIFT payments) and Net Internal Area (NIA) (used for most other purposes).
When measuring NIA for a medical or surgery premises, additional areas need to be included:
Changing Places rooms, baby changing facilities and other ancillary accommodation for the benefit of patients
Additional protected fire escape areas
Additional WC provision for patients
Clinical waste storage
Additional cleaner’s rooms for the management of infection control
Shower and locker rooms
Shared circulation or corridor space
Appendix A includes helpful floor plans to help you understand the additional areas that you may need to include in NIA.
Of course, it’s then up to you, the valuer, to decide how you value each element of the building!
What does the Professional Standard say about inspection?
The Professional Standard lists additional considerations when inspecting medical or surgery premises.
These include:
Car parking
Ambulance bay(s)
Access requirements
Fixtures and fittings
Room sizes and compliance with legislation
Permanent circulation areas
Link areas
Flexibility and future adaptability
Lifts
Where can I read more?
Head to the RICS Property Journal to read another interesting article highlighting the changes.
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Stay tuned for our next blog post to help build a better you.
N.b. Nothing in this article constitutes legal, professional or financial advice.
