Healthcare Property Issue 11 September-October 2025

09/2025

SEPTEMBER-OCTOBER 2025

The UK's first carbon-neutral built sports

arena and medical centre opens in Sheffield

Special report on the impact of the NHS

10-Year Health Plan on the estate

The Government unveils its £725bn

Infrastructure Pipeline

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W E L C O M E

Care closer to home

Since the last edition of Healthcare

Property magazine, the Government

has unveiled its eagerly-anticipated

NHS 10-Year Health Plan for England,

a blueprint for the long-term future of

health and care services.

Predictably, and in line with Labour’s

election manifesto, the document aims

to bring about a shift from a reliance

on acute hospitals and secondary

health services to a more-proactive

and localised community and primary

care-based approach.

And this will have a major impact

on the health and care estate —

with a need for a network of new

‘neighbourhood health centres’.

This pledge will require huge capital investment in

both new buildings and the redevelopment of existing

properties, including former shops and office spaces.

In this edition you can read more about the

implications of this switch on the property

sector moving forward, with comments from

NHS Property Services, Community Health

Partnerships, CBRE, Browne Jacobson, and Kajima

Partnerships (p14).

They explore everything from the potential of existing

buildings to help deliver more community-based health

services to the need for a new approach to design and

construction methodologies.

Alongside the new health plan, the Government has

also launched its Infrastructure Pipeline, providing a 10-

year forward look of investment into major UK capital

infrastructure, including hospitals and other health and

care facilities.

In total the pipeline predicts spend

of over £100bn in the health and

social care sector over the next decade,

providing opportunities for service and

product suppliers.

You can read about this in our

news section (p6).

Other features explore the findings

of new market reports from Christie

& Co, the Private Healthcare

Information Network, Knight Frank,

and CBRE, looking at everything

from the increasingly-profitable

private healthcare property market

to the landscape for care home

property transactions.

What all these reports have in

common is they highlight the continued interest in

health and social care infrastructure.

The next few months and years will be tough, against

a backdrop of skills shortages, supply chain issues, and

rising costs. But what is clear is that there will need to

be capital investment in health and care and it will be an

interesting, and hopefully fruitful, time for those able to

provide these services.

Coming up in the next edition of Healthcare

Property we will be looking at arts in health and

why the sector needs to specify building products

and fixtures which are manufactured with

sustainability in mind.

Please contact joanne.makosinski@nexusgroup.co.uk

if you can help.

Jo Makosinski

Editor, Healthcare Property

About Jo: Jo is the editor of Healthcare Property, having

joined Nexus Media in November 2023.

She has been specialising in design and construction

best practice for the past 16 years, working on the

Building Better Healthcare Awards and editing both

Building Better Healthcare and Healthcare Design &

Management magazines.

She has a special interest in the design of public

buildings, including schools, nurseries, colleges, hospitals,

health centres, and libraries.

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Contents

Chief executive officer

Alex Dampier

Chief operating officer

Sarah Hyman

Editor

Joanne Makosinski

joanne.makosinski@nexusgroup.co.uk

Reporter and subeditor

Charles Wheeldon

Advertising & event sales director

Caroline Bowern

Business development executive

Kirsty Parks

Head of marketing

Carrie Lee

Publisher

Harry Hyman

6 28

6-10 News

We round up the latest big stories

from the sector, including the

launch of the Government’s new

Infrastructure Pipeline, a £75m

cash injection to improve hospice

environments, and the shortlisting

of 16 contractors for the revamped

New Hospital Programme (NHP)

11-12 Projects

News on the latest design and

construction projects from across

the health and care sector, including

the completion of a new urology

outpatient department at the Royal

Berkshire Hospital, work beginning

on the Waterford Surgical Hub

development in Ireland, and the

opening of the Hinckley Community

Diagnostic Centre

28-29 Finance and

Property Deals

The latest property deals,

acquisitions, and mergers from

across the sector

30-40 Design and Construction

Exploring why wood should be

used more often in healthcare

construction projects; how

a new multi-purpose sports

and community arena with an

integrated medical diagnostic

centre is setting a benchmark

for future service delivery;

and the need for an ‘urgent

rethink’ of the way hospitals are

designed, built, and maintained

in an effort to reduce healthcareassociated

infections

Investor Publishing Ltd, 3rd Floor,

10 Rose & Crown Yard, King Street,

London, SW1Y 6RE

Tel: 020 7104 2000

Website: www.healthcare-property.com

Healthcare Property is published six times a year

by Investor Publishing Ltd.

ISSN 3029-0627

© Investor Publishing Limited 2025

The views expressed in Healthcare Property

are not necessarily those of the editor or publishers.

@HCprop

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14

14-20 Special Report

We look at the likely impact of the

newly-released 10-Year Health Plan

on the healthcare estate

21-27 Finance and Property

A new report from the Private

Healthcare Information Network

reveals how the private healthcare

property market is increasingly

attractive to investors and

developers; Christie & Co predicts

market interest in the care homes

sector; and Knight Frank reveals

that UK healthcare real estate

transactions hit £3.2bn in 2024

42

42-44 Estates and Facilities

Management

The consequences of relying

on a product-first approach

when choosing healthcare

lighting solutions

44-50 Environmental

We speak to the design team

behind the new Velindre Cancer

Centre, a low-carbon facility

which is setting a new standard

in sustainable design. Plus, Ryan

O’Neill, chief strategy officer at

Equity Energies, looks at why

regulating energy brokers matters

for healthcare estates


News

Building For the Future

The Government unveils its Infrastructure Pipeline, which forecasts

billions of pounds worth of public and private investment in health and

social care developments

The Government has published plans

for billions of pounds worth of

capital investment in the healthcare

and social care estate, with the unveiling of its

much-anticipated Infrastructure Pipeline.

The document provides a 10-year

forward look of investment into major UK

capital infrastructure, including hospitals

and other health and care facilities; and

supports the strategic framework of the

Government’s UK Infrastructure: a 10 Year

Strategy and its Plan for Change.

It sets out at least £725bn of public

funding for infrastructure over 10 years and

highlights the critical role played by private

investment alongside this.

Through a series of regular updates, the

pipeline will become a comprehensive

database of information for construction

firms and investors looking to understand

future demand.

And it will enable supply chain

investment in capacity and capability and

encourage private investment. In so doing,

it will improve the delivery of the country’s

infrastructure projects and support

economic growth.

The pipeline will also help the

Government by providing a clear and

consistent picture of all significant

infrastructure investments to inform

decisions and increase coherence in

spending, policy, and delivery, with future

iterations initially focused on investability

and supporting better understanding of

necessary jobs and skills to support the bestpossible

investment outcomes.

For the healthcare sector, the

report reveals a number of funding

streams, including:

• The New Hospital Programme: The

New Hospital Programme (NHP) will

transform the delivery and operation

of new hospital infrastructure,

using a standardised design and

approach (known as Hospital 2.0) to

enable more-cost-effective hospital

builds with facilities that are at the

cutting edge of modern technology,

innovation, sustainability, and excellent

patient care. This will support the

transformation of secondary care

provision locally and regionally, with

a capital budget rising to up to £15bn

over each five-year wave of investment

from 2030, with exact profiles

beyond 2030 to be decided through

business planning

• Electives and EUC/Community Fund:

Investment in electives, urgent and

emergency care (UEC), and community

to create additional NHS capacity

for diagnostics and procedures and in

emergency departments, which will

help meet the target of 92% of patients

waiting no longer than 18 weeks from

referral to treatment as set out in the

6 | SEPTEMBER-OCTOBER 2025 HEALTHCARE-PROPERTY.COM

News

Plan for Change

• NHS Estate Maintenance and Repair

Fund: A programme of investment

for the maintenance and repair of the

NHS estate, with investment targeted to

reduce the level of critical infrastructure

risk and eradicate Reinforced Autoclaved

Aerated Concrete (RAAC) entirely

• Primary Care and Neighbourhood

Health Centre Fund: Delivering refurb

and utilisation projects across the GP

estate over five years, including a level

of funding for neighbourhood health

centres through refurbishment of

existing buildings

• Secondary Care Estate Existing

Upgrades Fund: Funding for the

continuation of existing projects across

the Hospital Upgrades programme,

three existing Critical Infrastructure

Risk schemes, and remaining projects to

eradicate all dormitory beds in mental

health inpatient units in England

• Secure and Open Children’s Homes

Capital Programme: Over £560m in

capital funding will be provided over

the next four years to refurbish and

expand existing children’s homes, create

new foster care placements, and fix

… the pipeline provides information on public

and privately-delivered infrastructure projects

in construction, under development, or in preproject

stages where a clear strategic need has

been prioritised by the UK Government

problems in the care system that have

left many children without suitable

places to live. It also includes capital

investment to build new/rebuild existing

secure children’s homes to expand

places and improve existing provision

capital investment to create new open

children’s homes places for children with

complex mutliple needs

In total the pipeline predicts spend of over

£100bn in the health and social care sector.

A government spokesman said:

“Built using data from 40 organisations

including government and public bodies

and regulated businesses, the pipeline

provides information on public and

privately-delivered infrastructure projects

in construction, under development,

or in pre-project stages where a clear

strategic need has been prioritised by

the UK Government.

“The pipeline provides details of capital

construction and maintenance costs for

projects and programmes anticipated to

exceed £25m for economic infrastructure.

“The pipeline is a dynamic online tool,

developed with input from industry

stakeholders, which consists of an

interactive dashboard, a fully-downloadable

spreadsheet providing information about

each scheme with details of anticipated

spend, current status, and expected

completion, together with information on

the pipeline's methodology and how it will

be developed in future.

“It is not an announcement of new

government policy or project investments,

but an update on the latest position on each

project and programme in the portfolio.

“For government investments, it will

provide information on projects and

programmes previously announced

through a Spending Review or at a

departmental level. ”

The pipeline will be updated initially on a

six-monthly schedule. n


News

£75m boost for

hospices to transform

end-of-life care

Government announces £75m to modernise facilities and deliver

upgrades to hospices across England

More than 170 hospices across

England will receive a share of a

new £75m Government fund —

the largest cash injection ever for the sector

— to ensure patients receive the highestquality

end-of-life care in comfortable,

dignified environments.

It follows a £25m boost in February,

delivering the Government’s £100m

investment confirmed in December

which is already supporting urgent

building repairs and creating warmer,

more-homely spaces.

This cash marks a further step in the

delivery of the Government’s Plan for

Change, improving care in the community

where people need it most.

Hospices include Wigan and Leigh,

which was recently visited by Health

Minister, Stephen Kinnock, and will use

funding to replace a flat roof that was

leaking. The money will also pay for a

new heating system, helping to create a

better, more-comfortable environment

for patients and enabling staff to deliver

higher-quality care.

Kinnock said: “Hospices play a vital role

in our society by providing invaluable care

and support when people need it most.

“At this most difficult time, people

deserve to receive the best care in the bestpossible

environment with dignity.

“I have seen first hand how our funding

is already making a real difference to

improving facilities for patients and families

and this additional funding will deliver

further upgrades, relieving pressure on dayto-day

spending.”

He added: “End-of-life care is crucial

to our 10 Year Health Plan and our

fundamental shift of moving more care out

of hospital and into the community.

“We will continue to support hospices so

they can deliver their vital work.”

Improvements already made at hospices

across the country include:

• Major building works and

modernised facilities

• Digital transformation to improve data

sharing between healthcare providers

• The development of outreach services to

extend care beyond physical buildings

• The creation of more-welcoming spaces for

families, including outdoor areas

• Energy efficiency measures to improve

sustainability

This includes Garden House Hospice

Care in Stevenage, which has refurbished

its integrated procedures unit with eight

new specially-adapted beds and mattresses,

and created a separate room for patients’

close family members to spend the

night when needed.

The hospice has also equipped all its

nurses with laptops with single logins to

stop them carrying too much equipment

when visiting patients.

The new cash injection is for the financial

year 2025-2026 and will be distributed

by Hospice UK.

Hospices have been allocated a pot of

funding and will be able to proceed with

upgrades, invoicing Hospice UK once work

has been completed.

Toby Porter, chief executive of Hospice

UK, said: “The announcement in late

2024 of £100m in capital funding for

hospices was welcome recognition from the

Government of the immense pressure facing

hospices, and their urgent need for more

financial support.

“We were pleased to distribute the

first £25m of this funding early in March

and we know this money has made a

huge difference to hospices, and the next

£75m will continue to help them invest

in their buildings, facilities, and digital

infrastructure.”

But he added: “While this one-off

investment has been very welcome, it’s

critical that we continue to work with

the Government to secure long-term

reform to ensure hospice care is there

for everyone who needs it, whoever and

wherever they are.

“The Government has just emphasised

the importance of hospices in its 10 Year

Plan for the NHS and the role they can

play in shifting care from hospitals into

the community.

“With the right support, there is so

much more they can do to realise the vision

and we look forward to working with

government to make this a reality.”

Matthew Reed, chief executive of

Marie Curie, said: “Marie Curie welcomes

this grant funding, which we will be

investing in helping to ensure people

living with terminal illness are well

cared for across England, whether in our

hospice buildings or in their own homes

through improvements in the use of

digital technology.

“We look forward to working with the

Government to ensure longer-term funding

is put in place to ensure the best-possible

palliative care is sustainably available for

everyone who needs it, including in their

new neighbourhood health centres in the

most-deprived communities.” n

The announcement in late 2024 of £100m

in capital funding for hospices was welcome

recognition from the Government of the

immense pressure facing hospices, and their

urgent need for more financial support


‘Thousands’ of UK contract opportunities

to be created under the NHP

News

Sixteen contractors from the UK and

overseas have been shortlisted to compete

for projects under the revamped New

Hospital Programme (NHP).

The suppliers have received an Invitation

to Participate in Dialogue (ITPD) to compete

for places on the 12-year, £37bn Delivery

Alliance for the NHP.

The strategic, long-term, multi-supplier

framework agreement will be used by NHS

trusts across the country to appoint Alliance

Partners responsible for the detailed design,

construction, and handover of individual NHP

schemes between 2025-2040.

The dialogue with bidders is due to conclude

in the autumn, with places on the framework

expected to be awarded by the end of the year.

The shortlisted suppliers are:

• BAM Construction

• Bovis Construction (Europe)

• Bouygues UK

• Dragados Sociedad Anonima

• FCC Construcción SA

• Integrated Health Projects (IHP)

• John Graham Construction

• John Sisk & Son

• Kier Construction

• Laing O’Rourke Delivery

• McLaren Construction

• Morgan Sindall Construction and

Infrastructure

• Multiplex Construction Europe

• Sacyr UK

• Skanska Construction UK

• Willmott Dixon Construction

Karin Smyth MP, Minister of State for

Secondary Care, said: “We’re delighted to be

entering the next stages of the procurement

process for the New Hospital Programme

Alliance and I wanted to take a moment

to reaffirm the Government’s unwavering

commitment to delivering this once-in-ageneration

programme.

“As the Secretary of State outlined to

Parliament on 20 January, our mission to

transform healthcare infrastructure for the

future of the NHS remains a priority as we shift

to deliver this new credible plan.

“2025 is off to a fantastic start and we’ve

reached several major milestones: the

Programme Business Case for 2025 has been

approved, the Programme Delivery Partner has

been appointed, and the supplier qualification

process has been successfully completed.

“Each of these steps has built real

momentum for the year ahead, and the NHP

is on track to award places on the Hospital 2.0

Alliance by the end of the year.”

Rick Lennard, the NHP’s executive

commercial director, added: “It’s fantastic to

see such a strong shortlist of both established

and new market entrants — including both UK

and international organisations.

“Through a collaborative allocation process,

NHS trusts will use the delivery alliance to

appoint suppliers to work with them to deliver

new hospitals across the country that bring the

NHP’s vision to life.

“The Hospital 2.0 Alliance is a true

partnership between NHS England, trusts,

and our supply chain partners, underpinned

by the Hospital 2.0 Alliance Agreement that

defines how we’ll work together efficiently and

maximise social value.

“Looking ahead, we’re encouraging suppliers

of all sizes to start preparing now.

“Thousands of contract opportunities will be

created across the UK.

“This is a nationally-important programme

and we welcome innovative partners who can

help us deliver it.”

Morgan Sindall completes refurbishment

projects at Sussex hospital

Morgan Sindall Construction has

delivered two refurbishment projects

for University Hospitals Sussex NHS

Foundation Trust at St Richard’s Hospital,

a medium-sized district general hospital in

Chichester, West Sussex.

This included handing over a new Same

Day Emergency Care (SDEC) unit and the

installation of a temporary mortuary to enable

the existing facility to be upgraded.

Both projects were procured via the SCAPE

Construction Framework.

The £6m SDEC project refurbished a former

acute medical unit into a modern facility

which includes a waiting area, one treatment

room, one triage, one separation room and

18 bays with trolley and chair spaces for

assessment and treatment.

The work will significantly increase the

hospital’s ability to assess, investigate, and treat

patients without them having to be admitted

overnight onto a ward.

The project took 14 weeks to complete with

the contractor paying attention to reducing

noise and vibration in the ward which is

located directly above the new unit, as well

as considering how, and when, materials

and equipment could be moved across the

hospital’s ‘blue light’ route.

The temporary mortuary project was

initiated following a structural assessment

which identified reinforced autoclaved

aerated concrete within the roof of the

hospital’s existing unit.

To ensure the long-term safety and integrity

of the building, a new permanent roof structure

will need to be designed and installed. And a

temporary modular mortuary was constructed

to maintain vital services to enable the roof and

internal improvements to be carried out.

Guy Hannell, area director at Morgan

Sindall Construction, said: “These projects

have futureproofed St Richard’s Hospital in

several key ways.

“The SDEC unit will alleviate pressure

on emergency services while boosting the

hospital’s capacity to treat patients and the

RAAC improvement works will ensure the

safety and resilience of the trust’s estate for

many years to come.

“What’s more, delivering both projects on

time and within budget helps the trust with its

long-term plans, investments, and operations.”

Sean Kedzia, hospital director at St Richard’s

Hospital, added: “These developments mark

an important step forward in our commitment

to delivering high-quality, patient-centred care

across University Hospitals Sussex.

“The new Same Day Emergency Care unit is

a vital addition to our clinical services, helping

us treat patients more efficiently while easing

pressure on our emergency department and

inpatient wards.

“And the new mortuary is also a meaningful

improvement, further demonstrating our

dedication to enhancing services in every part

of the hospital.”


News

Children’s cancer centre project begins

Construction work has started on Great

Ormond Street Children’s Hospital’s new

Children’s Cancer Centre.

After four months of expert work to

deconstruct an existing building on the site,

building contractor, Sisk, has started the main

construction of the facility.

This begins with the basement and

excavation and then it will be onwards

and upwards until the world-leading new

centre is complete.

At a recent ground-breaking event, hospital

staff were joined by principal donor, John

Grayken; the Saïd family, long-time GOSH

Charity supporters and a former GOSH family;

Public Health and Prevention Minister, Ashley

Dalton MP; Mat Shaw, GOSH chief executive;

Louise Parkes, chief executive of GOSH

Charity; and other donors and supporters of

GOSH Charity’s Build It. Beat It. appeal.

The appeal aims to raise £300m to help build

the centre, deliver transformation in cancer

care, advance research, and save lives.

Shaw said: “The Children’s Cancer Centre

will make a difference to every child who

comes to GOSH, and particularly it will help us

advance how we care and treat children who

have rare and complex cancers.

“This new facility will help us realise our

ambitions so we can match the amazing

work of our clinicians with buildings and

infrastructure that makes it easy for them to

be their best.”

With a 20% increase in capacity, digitallyadvanced

inpatient wards, and a new

hospital school, the centre will transform

cancer care at GOSH.

Alongside these developments, the centre

also enables the hospital to expand its

theatres, imaging, and critical care facilities

used by all specialities and create a new main

entrance for the whole hospital.

Dalton said: “The hospital is a symbol of

Care home approved on appeal

A ground-breaking event was recently held at the site of the proposed new GOSH cancer centre

what we can achieve when we combine the

excellence of our NHS people, innovative

technologies, ground-breaking treatment, and

world-class research.

“As someone living with cancer myself,

I know how terrifying a diagnosis can be

— and when it happens to our children,

that’s unimaginable.

“These families deserve a government that

is backing them every step of the way, which

is why we have relaunched the Children and

Young People Cancer Taskforce and will

ensure children’s cancer is at the forefront of

our Plan for Change.”

Muller Property Group has

announced that outline

planning permission has been

granted on appeal for a new

80-bedroom care home in

Sandy, Bedfordshire.

The appeal followed Central

Bedfordshire Council’s

previous decision to refuse

permission in June 2024.

The Planning Inspectorate

has now overturned that

decision, giving the green light

to the much-needed care home

development, which will be

situated on a sustainably-located

site within the town of Sandy.

The approved plans involve the

demolition of existing buildings

on the site and the construction

of a purpose-built, 2.5-storey

80-bedroom care home (Use

Class C2), with a sub-station,

access, car parking, servicing, and

other associated works.

Sandy, a vibrant town in central

Bedfordshire, benefits from

strong transport links, situated

just eight miles east of Bedford, 18

miles south west of Cambridge,

and 43 miles north of central

London. Designed to provide

a comfortable and homely

environment, the care home will

offer a wide range of facilities to

promote residents’ wellbeing and

quality of life.

Key features will include:

• Lounge and dining day spaces

• A café bistro for

residents and visitors

• A hair and nail salon

• Ancillary services and staff

offices on each floor

Sandy Care Home

• Secure landscaped gardens

• Spacious ensuite bedrooms

• Purpose-designed servicing

and car parking

Access to the development will

be from the east of the site via the

existing entrance point in London

Road, minimising disruption

to local traffic.

The appeal inspector noted

that there is a significant need

for additional care home bed

spaces in the area.

And Muller’s Care Home Needs

Assessment identified a shortfall

of 146 care home beds by 2030.

The 80 beds proposed as part

of the scheme would represent a

substantial contribution toward

addressing this shortfall.

This was considered a further

public benefit in support of

the development.

Julie Doherty, managing director

of care at Muller Property Group,

said: “We are delighted with

the outcome of this appeal and

that the inspector recognised

the strong case for care need at

this location.

“With a clear and growing

demand for elderly care, this

approval supports our wider

mission to deliver high-quality,

planning-approved care home

sites in locations where the need

is most pressing.”

The care home will also

deliver significant local benefits,

including job creation during

construction and operation,

as well as long-term social

infrastructure to support the

needs of an ageing population.


£24.6m CDC delivered in Hinckley

The £24.6m state-of-the-art Hinckley

Community Diagnostic Centre (CDC) has

been officially opened by Dr Luke Evans,

MP for Hinckley and Bosworth.

Located next to the site of the former

Hinckley and District Community Hospital

in Mount Road, the centre will act as a major

hub providing a range of diagnostic tests such

as CT, MRI, X-Ray, ultrasound, phlebotomy,

dermatology, audiology assessments, and

endoscopy, supporting all three shifts outlined

in the forthcoming 10 Year Health Plan.

Delivered by NHS Property Services

(NHSPS) in partnership with NHS Leicester,

Leicestershire and Rutland Integrated Care

Board (LLR ICB) and University Hospitals

of Leicester NHS Trust (UHL), the stateof-the-art

facility is the first of its kind in

Leicestershire.

Paul Jones, regional capital project lead at

NHSPS, said: “It’s fantastic to have delivered

this vital community facility on our site in an

accessible location so close to the town centre.

“This new building will provide a stepchange

in the quality and variety of care that

the NHS is able to provide for the people of

Hinckley and the wider area.

“By supporting earlier diagnosis, improving

access to care closer to home, and helping

modernise NHS infrastructure, this CDC

directly contributes to the three key shifts

outlined in the Government’s vision for the

NHS. Our team is also looking forward to

providing facilities management services for

the building going forward.”

The building spans approximately 2,000sq

m and is equipped to perform up to 89,000

tests annually.

It was constructed by Darwin Group using

innovative offsite modular building techniques,

enabling faster delivery and reduced

environmental impact compared to traditional

construction methods.

The project was made possible through

a £24.6m investment from NHS England’s

News • Projects

national programme to expand CDCs in

community settings across the country.

Dr Jess Sokolov, regional medical director of

NHS England in the Midlands, said: “Providing

more-convenient access to diagnostic testing

is a key part of the national Elective Reform

Plan, and we have already seen how much

people in the Midlands benefit from direct

referral from their local doctor to an expanded

range of scans and tests on their doorstep.

“This is an exciting time for local people in

Hinckley as they will be able to access highquality

NHS diagnostic services faster, and

closer to home.”

Urology unit set to open

A new urology outpatient

department has been

constructed at the Royal

Berkshire Hospital in Reading.

Delivered by MTX Contracts,

the new facility will be used by the

urology, surgical, and outpatient

teams and has been funded by

the NHS Capital for Targeted

Investment in Elective Recovery,

created to reduce the backlog of

elective procedures.

MTX employs modern methods

of construction to deliver projects

faster, safer, greener, and more

cost effectively than conventional

building methods.

The use of factorymanufactured

structural steel

units and services modules

assembled on site is part of the

MMC-led process, which ensures

quality assured construction and

speeds delivery.

A total of 44 preciselyengineered

structural steel units

were craned into position to

create the 1,400sq m facility.

The department is designed

to enhance urological care with

a wide range of specialised

areas, including six consulting/

examination rooms, an ultrasound

scanner room, and a large

treatment room.

The building also houses

dedicated spaces for essential

equipment and services such as

a treatment/chemotherapy room,

lithotripter room for non-invasive

kidney stone treatments, and a

flexible laboratory.

Supporting staff and patient

flow, the new facility includes

offices, a staff rest room, locker/

changing room, and reception

and waiting areas.

And a dedicated plant room

on the first floor houses air

handling units and other

mechanical and electrical

service elements which were

manufactured offsite as modules,

in line with the Government’s

Design for Manufacture and

Assembly protocols.

Steve McManus, chief

executive of Royal Berkshire NHS

Foundation Trust, said: “This unit

will provide modern, state-of-theart

facilities for staff and patients

and enable us to perform more

surgical procedures and see

patients more quickly.

“It is part of the ongoing

investment we are making into

services at the trust to ensure

our local community can access

high-quality and safe care as

quickly as possible.”

MTX pre-construction director,

Adam Robertson, added: “We’re

proud to have partnered with

the trust to deliver this project;

the latest in a series of contracts

we have secured to reduce NHS

waiting lists and enhance the

patient experience.”


News • Projects

Modular approach for

endoscopy centre scheme

Offsite manufacturer, Premier Modular,

and P+HS Architects have partnered to

deliver a new modular endoscopy centre,

with the first phase of the installation now

underway on site.

The new centre is part of University

Hospitals Dorset’s (UHD) Integrated Care

System's long-term vision for the Community

Diagnostic Centres programme.

The new, state-of-the-art building will

expand UHD’s endoscopy services at Poole

Hospital, spanning three storeys and including

six endoscopy procedure and associated

rooms, training and seminar rooms, and

decontamination units.

The centre will enable the trust to treat

more patients, reduce waiting times,

enhance patient experiences, and

train the next generation of endoscopy

professionals in Dorset.

Based in East Yorkshire, Premier Modular

is providing a full turnkey service for the

59-module project, which will be installed

over two phases, with completion expected

early next year.

The new facility will feature a unique green

cladding that blends with nature, as well as

PV solar panels along the available roof space

boosting the sustainability credentials of

the building.

Leading the design, P+HS Architects has

developed a bespoke facility that responds to

the unique character of the Poole Hospital site.

It prioritises both therapeutic and practical

needs, with carefully-planned clinical

patient flows and a welcoming, humanscaled

environment.

Public consultations, including feedback

from neighbours and special interest groups,

shaped the building’s layout and design,

creating a calming space that connects users

with nature through framed views of the

surrounding landscape.

David Harris, chief executive at Premier

Modular, said: “Having a long working

partnership with P+HS Architects, it’s great to

partner with them on the delivery of the new

endoscopy centre.

“Our work together will provide the

community around the Poole and the Dorset

area with further services that will increase the

inflow of patients in a safe and timely manner.

“Our work for UHD, delivered under the NHS

Shared Business Services Modular Buildings

framework – recently renewed with our

reappointment – demonstrates how this costeffective

procurement route provides rapid

access to modular construction solutions that

support urgent infrastructure needs.”

James Almond, managing director at P+HS

Architects, adds: “We have brought together

complex clinical requirements in a building

that still feels warm, human, and therapeutic.

“Our experience in modern methods of

construction has enabled us to deliver a

bespoke modular design that responds to

the site’s challenges and not only works

technically, but fits the needs of the people

who will use it.

“It’s fantastic to see the first modules now

arriving on site and the building beginning

to take shape.”

Milestone for surgical hub project

Ireland’s Minister for Health,

Jennifer Carroll MacNeill, has

officially turned the first sod

on the Waterford Surgical

Hub development, a new

healthcare facility designed to

reduce patient waiting times.

The completed development

will comprise two fully-operational

theatres and two further theatres

that can be fitted out at a later

date if needed.

The new theatres will deliver

additional capacity to support

scheduled care for day cases and

help to reduce waiting lists.

This will enable the separation

of scheduled and unscheduled

care and existing acute capacity

to support urgent and morecomplex

procedures at University

Hospital Waterford.

Located at the former

Glanbia Site in Maypark Lane,

Waterford, the net construction

cost of the facility is €66.2m

and it is anticipated the hub

will be operational towards

the end of 2026.

Speaking at the sod turning,

MacNeill said: “The new surgical

hub in Waterford will cut waiting

times and make a real difference

to people needing treatment and

care in the South East.

“The two new theatres will

support urgent and morecomplex

procedures at

University Hospital Waterford

by delivering additional capacity

for day cases when up and

running by the end of next year,

ensuring that patients get the care

they need, when they need it,

closer to home.”

Martina Queally, regional

executive officer for HSE

Dublin and South East, added:

“Reducing waiting lists and

times for patients is a key priority

for the HSE Dublin and the

South East region.

“By moving day case

procedures to this hub, University

Hospital Waterford will have

greater capacity for patients

who need emergency and

more-complex care.

“HSE Dublin and South East

is pleased to have this surgical

hub under the governance of

University Hospital Waterford

and it will be an addition to the

great work already being done by

the hospital’s team in delivering

regional healthcare.”

The contractor for the scheme

is JJ Rhatigan.


9 June 2026

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Policy •Special Report

Prime Minister, Keir Starmer, visits the Ludwig Guttmann health centre

to unveil the 10-Year Health Plan. Image, Simon Dawson/No 10 Downing Street

The 10-Year Health

Plan — ‘Reform or die’

We trawl the Government’s newly-released 10-Year Health Plan to

gauge the likely impact on the NHS estate

Earlier this summer the Government

unveiled its long-awaited 10-Year

Health Plan for England, a 168-page

document which sets out proposals to

reinvent the NHS through three radical

shifts: hospital to community, analogue to

digital, and sickness to prevention.

And it recognises the role the estate

has to play in these aims, with plans to

redevelop existing facilities, build new

infrastructure, and work more closely with

the private sector moving forward.

In particular, the pledge to establish a

new network of ‘neighbourhood health

centres’ (NHCs) in every community will

require significant capital investment.

The plan states: “We need an estate

that provides neighbourhood teams

with the equipment, working space, and

technology they need to make our new care

model a reality.

“Wherever possible, we will maximise

value for money by repurposing poorly-used

existing NHS and public sector estate.

“The ambitious proposals will require

significant and strategic capital investment

to drive improvements in patient care

and productivity.

“We will deliver this against a historical

backdrop of significant under-investment in

capital for the health service.”

RINGFENCING BUDGETS

While capital investment in the healthcare

estate increased substantially during the

2000s, the 2010s saw a period of significant

divestment from capital — as budgets were

redirected to subsidise day-to-day spending.

According to the plan, this has

The new policy document sets out proposals to

reinvent the NHS

‘undermined productivity’.

It states: “What is more, this

underinvestment has been compounded

by a capital regime which has widely

been described as dysfunctional, with the

National Audit Office concluding that

it ‘made it difficult to plan and acted as a

barrier to investment’.

We need an estate that provides neighbourhood

teams with the equipment, working space, and

technology they need to make our new care

model a reality


Special Report • Policy

One of the clearest

signs of a broken

capital regime is an

NHS that regularly

underspends its capital

budget, despite having

too little to begin with

“One of the clearest signs of a broken

capital regime is an NHS that regularly

underspends its capital budget, despite

having too little to begin with.

“As a result, problems have been stored

up for the future and the NHS in 2025 has

crumbling buildings, with care disrupted at

13 hospitals a day as a result.”

AGEING STOCK

Currently, some 44% of hospitals pre-date the

creation of the internet in 1983 and 11% of

the estate is older than the NHS itself.

In addition, much of the primary care

estate is not fit for modern requirements,

with 22% of primary care buildings

pre-dating the foundation of the

NHS, with many housed in converted

residential properties.

The plan states: “We have already begun

to tackle these problems through record

levels of capital investment into the NHS.

“We have boosted the capital budget by

£3.1bn from financial year 2023-2024 to

financial year 2025-2026 and invested more

than £2bn in technology and digital to

support higher-quality and productive care.

“We have also put in place a credible

plan for the New Hospital Programme,

representing tens of billions of pounds

of investment that will support our

construction industry.

“Our 10 Year Infrastructure Strategy takes

a long-term approach and for the first time

integrates health and social infrastructure

alongside economic infrastructure.

GREATER CERTAINTY

“We have committed to five-year capital

budgets and to extending them every

two years at regular spending reviews to

avoid funding ‘cliff edges’ and to provide

greater certainty.”

The plan outlines key capital

spending changes:

Prime Minister, Keir Starmer, visits the Sir Ludwig Guttmann Health Centre in London

with Health Secretary, Wes Streeting; and Chancellor, Rachel Reeves, as the Government

announced its 10-Year Health Plan for England. Picture by Simon Dawson/No 10 Downing Street

• The introduction of multi-year capital

budgets, set on a rolling five-year basis

in line with wider government capital

allocations. Allocations will be set

up to 2029-2030

• Reforms published in the 10 Year

Infrastructure Strategy are designed to

give greater certainty to the NHS and

industry on projects and programmes

across the country and allow better coordination

of industry and supply chains

across government

• Devolving more control over capital

budgets to the frontline, with fewer

restrictions on what providers can spend

their capital on and greater flexibility to

spend funding between financial years

• Radically streamlining the capital

approvals process to foster dynamism and

swifter delivery. There will be, at most,

three approval levels on the very-largest,

nationally-significant schemes (one

provider level, one regional/national,

and one cross government). And the

time that a typical scheme spends going

through central approvals will be reduced

by at least two to three months, while,

for smaller schemes, the reduction will

be four to five months. And new NHS

foundation trusts (FTs) will be able to

progress larger self-financed schemes as

long as they are consistent with overall

financial planning

Over time, new FTs will no longer receive, or

be dependent on, NHS capital allocations,

but will have the freedom to determine their

levels of capital spend each year in accordance

with their agreed plans, with their investment

constrained by their ability to finance

projects through cash generated from their

operating activity.

GETTING A GRIP

“This will incentivise financial grip and

delivery, requiring new FTs to focus on the

total resources available to them, both revenue

and capital, and ensure a relentless focus on

affordability and productivity,” says the plan.

“Learning from previous financial

regimes, we will work to avoid the freedoms



for new FTs adversely impacting the ability

of other NHS organisations to make

necessary capital expenditure.

“New NHS FTs also need to set out

capital spending plans as part of the

planning process.

“We anticipate approval of these being

automatic where spending is financed by

operating activity (as opposed to drawing

on the large and longstanding capital

reserves some FTs have).

“Where capital allocations, and any

associated cash, are still required, these

will generally flow in line with a fair

and transparent formula directly to the

accountable organisation best placed to

prioritise and deliver value for patients.

“Funding for operational capital

expenditure on routine maintenance and

equipment replacement will flow to NHS

providers in line with need.

“Funding to tackle maintenance backlogs

will flow directly to all providers in line

with the extent of their backlogs.

“This will leave systems free to focus on

working with regions to ensure investment

of strategic capital in new services and

capacity, such as neighbourhood and

diagnostic estate, that supports their

population health improvement plan.

“Capital allocations for this will be based

around population health need.

“Only where there is an exceptionallystrong

case, such as for the New Hospitals

Programme, will capital budgets be

held nationally.”

LOWERING THE BARRIER

The Government is also planning a reform of

public dividend capital (PDC) charges.

PDC is a unique form of financing

provided to public sector organisations,

principally NHS trusts and FTs, which

has often disincentivised new capital

investment and the regeneration and

consolidation of the estate.

“There is a case for lowering this barrier

to investment and we will consult with the

NHS on these options,” the plan states.

MAKING BETTER USE OF THE

EXISTING ESTATE

As well as generating new capital investment,

the plan sets out the importance of making

the most of existing buildings.

“We will do more to align financial

incentives to increase estates utilisation

and dispose of under-used and surplus

land,” it states.

“Many existing flexibilities are not

well explained to trusts and need to

be clear, predictable features of the

framework so that the frontline can plan

how to use them.”

For the majority of outpatient services to move

to neighbourhood health hubs by 2035, suitable

locations need to be identified and buildings have

to be developed or repurposed

Under the proposals, all trusts will have

the authority to:

• Retain 100% of receipts from the disposal

of land assets they own; these are a

credit in excess of existing capital limits

automatically in the year of disposal and

require no additional authorisation

• Use proceeds from disposals across

multiple financial years by notifying

DHSC by the end of the calendar

year of disposal proceeds so that a

transfer can be made

• Access a bridging loan facility from DHSC

to allow immediate capital investment that

can be repaid from disposal proceeds in

future years, which allows some bringing

forward of a sale benefit

And all this activity will be supported by the

private sector, with the 10 Year Infrastructure

Strategy committing to exploring the

feasibility of new Public Private Partnerships

(PPP) models for taxpayer-funded projects

‘in very limited circumstances where

they could represent value for money,

especially recognising the requirement in

neighbourhood and community health’.

Working with the National Infrastructure

and Service Transformation Authority

(NISTA), the Government says it will build

on the successful NHS Local Improvement

Finance Trust (LIFT) programme and will

‘look to drive competition in the market

to incentivise others, including third-party

developers, to improve their offer to deliver

better services at lower cost to the taxpayer’.

“We will engage with the market on

this programme and support NISTA in its

wider market testing of a new PPP model,”

says the health plan.

“We will progress rapidly, working across

government, on a business case around

neighbourhood health centres that sets

out the potential and an assessment of

value for money so that a final decision on

the approach can be taken by the time of

Budget 2025 in the autumn.

“Our approach will build on models

currently in use (for example, from the

operation since 2017 of the Welsh Mutual

Investment Model).

WHAT THE EXPERTS SAY

Speaking to Healthcare Property following

the publication of the plan, Sarah Livingston,

CBRE’s head of UK healthcare sector, said:

“Where and how healthcare is delivered

is going to change fundamentally over

the next 10 years.

“For the majority of outpatient services

to move to neighbourhood health hubs

by 2035, suitable locations need to

be identified and buildings have to be

developed or repurposed.

“Time will tell whether this can be

achieved at the speed required, but the

new 10-year plan is a welcomed and

necessary first step.

“From a real estate perspective —

good-quality care cannot be delivered in

derelict buildings.

“To successfully execute this strategy,

we will need to see significant funding for

While integrated care boards will commission

these hubs, there must be greater acceptance of

the role the private sector will play supporting

and working with the NHS to achieve the

ambition in the plan



Image, Simon Dawson/No 10 Downing Street

capital investment in the NHS estate.”

Charlotte Harpin, a partner specialising

in integrated care systems at law firm,

Browne Jacobson, added: “We expect a

new tranche of primary care hubs that

bring together physical and mental health

services, with community and primary care

under one roof, easing stress on both GP

practices and hospitals.

“While integrated care boards will

commission these hubs, there must

be greater acceptance of the role the

private sector will play supporting and

working with the NHS to achieve the

ambition in the plan.”

Carly Caton, Browne Jacobson’s partner

in commercial healthcare, said Private

Patient Units (PPUs) would also be a key

asset for NHS trusts.

“Giving trusts more freedom to spend

their money could create new opportunities

for innovation and generating commercial

income, which improves financial resilience

and patient outcomes by reinvestment into

NHS operations,” she adds.

“NHS trusts can increase their

commercial activity either on their own or

in partnership with the private sector.

“Opportunities exist in exporting their

expertise internationally, collaborating with

pharmaceutical and biotechnology firms to

commercialise research projects, renting out

unused space across the NHS estate, and

Now the Government has published its health

plan, everything rests on how it will work with all

parts of the health and care system to deliver on

its commitments

leasing out high-value medical equipment

or technology to other healthcare providers

during periods of low usage.

“One of the most-effective ways

of creating new income streams is to

increase patient private activity within

NHS hospitals.

PRIVATE PARTNERSHIPS

“Most trusts already run private patient units

(PPUs) but, with the exception of a few,

these tend to be relatively small, meaning

they provide untapped potential in terms

of raising additional income to plough back

into NHS services.

“There are numerous ways of expanding

PPUs and it doesn’t necessarily require

significant capital investment if a trust is

willing to partner with a private provider.

“Partnership structures can extend from

commercial agreements to developing some

form of physical expansion to estates.”

And Sarah Woolnough, chief executive

of health think tank, The King’s Fund,

warned that just co-locating services was

not enough to improve delivery, adding:

“In order to ultimately offer a morepersonalised

service to the public, health

and social care professionals will need to

work differently to join up patient care.

“It is critical that general practice is at

the heart of these new centres, and capital

investment will also be needed to ensure

they are in genuinely accessible community

locations and able to make use of the

latest technology.

“Now the Government has published its

health plan, everything rests on how it will

work with all parts of the health and care

system to deliver on its commitments.” n



Estate optimisation ‘crucial’

to future success

NHS Property Services (NHSPS) chairman, Nick Moberly, called

estates improvement ‘crucial’ to the success of the plan.

Speaking at the official launch of the

health strategy, held at NHSPS’s

Sir Ludwig Guttman Health and

Wellbeing Centre in Stratford and attended

by Prime Minister, Keir Starmer; Health and

Social Care Secretary, Wes Streeting; and

Chancellor, Rachel Reeves, Moberly said:

“We welcome the publication of the plan and

look forward to supporting the NHS and

Department of Health and Social Care to

deliver their ambitious vision for patients.

“Improving the NHS estate is crucial to

making the plan a reality, and it’s vital that

the NHS draws on its specialist estates

expertise to do so.”

Starmer added: “It’s buildings like this

that represent the future of the NHS

located in the local community, where

people live, working in partnership with

the people it serves, and delivering services

around their lives.

“The NHS should be there for everyone,

whenever they need it.

“Our 10-Year Health Plan will

fundamentally rewire and futureproof

the NHS; bringing care closer to home,

harnessing cutting-edge technology, and

focusing on prevention.

“That means access to GPs, nurses, and

wider support all in one place, rebalancing

the system around patients’ lives, not the

other way around.”

The launch came after NHSPS released

a new NHS Estate Optimisation Guide

to help NHS leaders and estate managers

navigate one of the most-pressing

challenges in modern healthcare: making

the most of the places and spaces that

support patient care.

Simon Taylor, director of estates

policy, strategy and capital projects at

NHSPS, explained: “Estate optimisation

is now critical to meeting patient need

and NHS reform.

“This guide provides NHS leaders with

the right practical steps to unlock the full

potential of their estate, using the expertise

and knowledge of the property experts

across NHSPS and the wider system.”

The newly-released guide outlines a clear,

flexible framework for:

• Assessing space demand and

property supply

• Understanding space utilisation

• Weighing options for transformation,

savings, and reinvestment

It also includes expert insights from

across NHSPS teams and partners, with

contributions from Jenny O’Donnell,

infrastructure, capital, estates and

sustainability lead at NHS Lancashire and

South Cumbria ICB; and Vissy Plati, senior

designer at Ryder Architecture.

Taylor said: “Simply better understanding

current space utilisation can often lead to

transformative estate opportunities.

“In some cases, buildings thought to be in

constant use are only 40% utilised.

“In others, strategic lease negotiations

or repurposing office space can unlock

significant savings to fund future

care delivery.” n

Some of the biggest issues are raised in NHS

Property Services’ Space Optimisation Survey

conducted with NHS leaders in Feb/Mar 2025

Simply better

understanding current

space utilisation

can often lead to

transformative

estate opportunities

This guide provides NHS leaders with the right practical steps to unlock

the full potential of their estate, using the expertise and knowledge of the

property experts across NHSPS and the wider system



Utilising existing assets

Community Health Partnerships has published a report on the shift

to neighbourhood health services

Following publication of the

Government’s long-term health plan,

Community Health Partnerships

(CHP) has published its Transforming

Neighbourhood Health report which explores

how its place-based estate, developed via

LIFT Public Private Partnerships, is enabling

the delivery of neighbourhood care in

local communities.

CHP manages 308 communitybased

health buildings providing

around 900,000sq m gross internal area

(GIA) of space and the clinical capacity

to deliver over 100 million patient

appointments per year.

Its buildings are multi-use and are

home to a mix of tenants and services

including GP practices, hospital trusts,

community health providers, mental health

trusts, pharmacies, diagnostic services,

outpatients, and more.

Last year, CHP invested more than

£16m in adaptations across the portfolio

to support improvements in healthcare

provision, increasing productivity and

enabling the shift of services from hospital

to community-based health centres.

The capital programme funded and

delivered 40 projects to support the

implementation of new models of care

and increase NHS productivity. This

investment enabled the expansion of

GP services, provided more community

diagnostic services, supported integrated

neighbourhood teams, and more.

It also included 12 green initiatives with

an investment of over £1.7m.

In addition, a further 21 capital projects

were funded directly by the NHS and

delivered on behalf of tenants.

Wendy Farrington-Chadd, chief

executive of CHP, said: “The Government’s

mission to deliver neighbourhood health

services as set out in its 10 Year Health Plan

speaks to the heart of CHP’s purpose and

the LIFT model.

“Through partnership working and

unlocking infrastructure solutions across

the LIFT estate, we are already supporting

the transformation of neighbourhood care

as highlighted in many great examples in

this publication.

“This is providing better environments

for NHS staff to deliver excellent quality

care, resulting in improved patient

outcomes and experiences.

“To deliver neighbourhood health centres

in every community the 10 Year Health

Plan sets out the need to make better use of

the existing estate.

“We have shown that, through strategic

capital investments which adapt and

repurpose space, we can drive productivity

and value from existing community-based

assets, supporting the shift of care closer

to home and the implementation of

neighbourhood care.

“The impact of our work speaks for itself

and I hope it inspires our partners to act on

future opportunities.”

Transforming Neighbourhood Health

highlights real examples where CHP has

enabled neighbourhood health services and

care closer to home. These include:

• East Birmingham Locality Hub at

Washwood Heath Health and Wellbeing

Centre, referenced in the 10 Year Health

Plan, has seen A&E attendances fall by

over 30% in the last 12 months among

targeted patients and length of hospital

stay fall by14%

• The opening of a Community Diagnostics

Centre (CDC) at Eltham Community

Hospital, South East London, provides

94,000 additional diagnostic appointments

per year, including 10,000 MRI and CT

scans and 28,000 phlebotomy tests

• Over 500,000 additional diagnostic

tests, checks, and scans delivered through

investment in Community Diagnostic

Centres (CDC) and services since 2021 n

We have shown that, through strategic capital investments which adapt

and repurpose space, we can drive productivity and value from existing

community-based assets, supporting the shift of care closer to home and the

implementation of neighbourhood care



Could smaller hospital projects

solve big NHS problems?

Central to the 10-Year Health Plan for England is the creation of neighbourhood health centres. Chris Gill,

managing director at Kajima Partnerships, explores how to make these work

The Government’s newly-launched 10-

Year Health Plan marks a significant

shift in how healthcare will be

delivered in the UK.

With the creation of a ‘neighbourhood

health service’, the ambition is clear: move

care out of hospitals and into communities,

making it more accessible, preventative,

and personalised.

But turning this vision into reality

will require more than policy; it requires

delivery models that are fast, flexible, and

financially sustainable.

This is where smaller, smarter

healthcare infrastructure projects can

have a big impact.

I, like many, have spent many hours in

A&E — whether with my young children

or other family members — alongside

patients facing far-more-serious conditions.

The lack of smaller, close-by facilities

makes the case for community alternatives

starkly apparent.

A minor injuries unit could provide

the diagnosis and treatment in a muchshorter

and more-efficient timeframe,

freeing up valuable A&E resources for

critical emergencies.

WELCOME RELIEF

The challenge now is how to build them

quickly, affordably, and at scale.

Community healthcare hubs are the

fastest route to meaningful relief for our

overstretched health services.

Facilities like minor injury units and

diagnostic centres can handle up to 80%

of A&E visits without requiring a full

hospital setting.

Crucially, they can be operational in a

significantly-shorter timeframe than it takes

to deliver a major hospital.

Take Lisburn, in Northern Ireland, where

Kajima Partnerships delivered a £40m

primary care centre for the NHS that

united eight GP practices and a range of

services under one roof.

Or Bicester, where a community hospital

combining ambulance services, imaging,

and physiotherapy, was constructed in

just 14 months.

These projects prove that rapid deployment

doesn’t mean compromising on quality.

Bicester Community Hospital

CLOSE TO HOME

The Government’s plan rightly emphasises the

need to ‘rebuild the NHS to train thousands

more family doctors’ and ‘bring care

closer to home’.

But these new GPs and neighbourhood

teams need somewhere to work. And that

means building the infrastructure now,

not in five years.

This is where public-private partnerships

(PPPs) have a vital role to play.

Smaller projects reduce investment

barriers, with capital requirements in the

tens of millions, rather than hundreds.

This opens the door to a broader range

of investors, including local authorities and

healthcare-focused funds.

Kajima has seen firsthand how PPPs can

deliver faster, more-resilient outcomes,

backed by guaranteed budgets and driven

by clinical need, not political cycles.

Private capital also brings discipline.

Projects are delivered on time

and on budget, without the midconstruction

compromises that plague

traditional procurement.

And with the Government’s plan

calling for a shift from ‘analogue to

digital’, private partners can help integrate

cutting-edge technologies, from AI

scribes in GP practices to digital-first

consultations, into the very fabric of

new facilities.

Planning policy must now catch up.

Lisburn Health Centre, Northern Ireland

TIME TO ACT

Local authorities should prioritise healthcare

in regeneration schemes, offering fast-track

approvals for community health hubs.

The Government, in turn, can incentivise

delivery speed by matching funding to

outcomes, thereby rewarding quick wins

that align with long-term strategy.

The concept of ‘healthcare on the high

street’ is no longer aspirational — it’s

become policy. And it’s a policy that

can regenerate town centres, reduce

hospital waiting lists, and improve health

outcomes all at once.

But to make it work, we need to think

beyond the allure of grand infrastructure

announcements.

The NHS cannot afford to wait for the

next generation of super-hospitals.

Small, community-based hubs offer a

route to meaningful improvement — if

we’re prepared to act.

The Government has set the direction.

Now it’s time to deliver. n


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Inside issue 08, March-April 2025

• Winners of the Healthcare Design Awards

2025 are revealed

• Experts predict healthcare property market

trends for 2025

• Trailblazing community hospital voted best

in England by patients

Inside issue 09, May-June 2025

• Former bank transformed into

private hospital

• Impact of the new Procurement Act on the

healthcare property market

• Special report on salutogenic lighting in

healthcare settings

Inside issue 10, July-August 2025

• The role of smart hospitals in future

healthcare delivery

• Health on the High Street: Bringing services

into the heart of communities

• HealthInvestor Awards 2025 — the

winners are revealed


Finance and Property

UK healthcare real estate

transactions hit £3.2bn

Investors continue to show interest in health sector, according

to Knight Frank

Healthcare real estate transactions in

the UK reached £3.2bn in 2024,

the highest figure seen since 2020,

according to property advisor, Knight Frank.

Last year investors confirmed their

positive sentiment in the healthcare sector.

And elderly care continues to generate

the most interest from investors, accounting

for 68% of total transactions, according

to Knight Frank’s Healthcare Capital

Markets Report.

In addition, private hospitals took some

share of the reported volume, accounting for

29%, and the final 3% was made up by adult

specialist care, primary care, and childcare.

Demand from overseas capital in 2024

reached 52.5%, with US-based REITs and

private equity groups ramping up their

activity and driving transaction volumes to

account for 66% of global flows into UK

healthcare, compared to 34% from the EU.

Both small and large portfolios are

transacting; a sign of both market entry

with the potential to scale as well as

possible consolidation, suggesting that the

healthcare sector may finally be at a point

of maturity to shift away from being an

alternative investment class.

Portfolio deals accounted for 85% of

transactions, compared to 52% in 2023, as

well-capitalised groups such as Welltower

and Omega have been active and look

to build scale.

Alongside company acquisitions, sale

and leaseback deal structures also played

a significant role in 2024’s transaction

volumes as operators looked to exit the

sector or release capital.

This strong sector confidence has

ultimately continued into this year with

Omega’s purchase of the Four Seasons

Health Care assets and Care Trust’s

acquisition of Care REIT.

Average annualised returns sat at 5.8%

at the end of Q4 24, up from 4.4% in the

previous period, highlighting the healthcare

sector’s stability of returns.

Knight Frank has also continued to see

strength in operator trading in its annual

Care Homes Trading Performance Review,

with a 2024 average occupancy level of

88.3%, up from 86.4% in 2023.

Julian Evans, global head of healthcare

at Knight Frank, said: “Healthcare’s

fundamental drivers, such as demographics,

long-term income, and ESG credentials,

Healthcare

Capital Markets

2025 Global capital flows back into the healthcare sector.

knightfrank.com/research

have and continue to present an undeniable

investment case.

“On this basis, the overall outlook for

the healthcare sector is optimistic and

we have already seen last year’s positive

sentiment filter through into 2025 with

the completion of large portfolio as

well as M&A deals.”

Ryan Richards, associate at Knight

Frank, added: “The surge of demand for

UK healthcare property is underlined by

a revival in M&A activity, with primary

care REIT Assura a target acquisition

for private equity giant KKR as well as

rival REIT PHP.

“Beyond this, US-based Care Trust has

acquired Care REIT as well as recent news

of a proposed merger between Aedifica and

Cofinnimo which would create the fourthlargest

healthcare REIT globally.

“It is clear that many investors wish to

build scale quickly in a sector that is highly

granular, but underpinned by long-term

structural trends.” n

Tarring Manor, Caring Homes

Fairfax Manor, Lovett Care

It is clear that many

investors wish to

build scale quickly

in a sector that is

highly granular, but

underpinned by longterm

structural trends

King’s Court Care Home, Kingsley Healthcare



Why do hospital developments

stack-up? Because they’re operational

Patrick Webb, senior director at CBRE, looks at why the private hospital

market is thriving against a backdrop of rising construction

costs and a forecasted increase in tender prices

of stronger rents, with some hospitals

achieving rent cover ratios above <5.0x.

Consequently, private hospital

developments are increasingly

viable, showcasing the potential of

operational real estate, despite broader

construction challenges.

A

recent review by the Building

Cost Information Service (BCIS)

highlights significant challenges in

the construction industry.

The BCIS forecasts a 17% rise in

construction costs and a 15% increase in

tender prices over the next five years.

And traditional real estate sectors are

struggling with these escalating costs,

making projects unfeasible due to soaring

rents that occupiers can’t afford.

In contrast, operational real

estate is thriving.

Strong performance in underlying

occupier businesses allows for higher rents

than those typical in traditional sectors —

often based on a stabilised EBITDARM at

benchmark ratios.

One particularly-promising operational

sector is the private hospital market.

With the UK facing an aging

population and increasing chronic health

conditions, private hospitals and clinics

are becoming essential to the public

health system.

And this has accelerated as the NHS

deals with record waiting lists.

TAKING STEPS

Earlier this year, the Prime Minister

announced a new agreement to enhance NHS

access to private hospital resources, a vital step

in tackling the nation’s healthcare issues.

These favourable conditions have helped

improve operational performance, with

the private acute market seeing year-onyear

revenues rising by £796m, a real-term

growth of 6.2%.

This positive environment is supportive

LONG-TERM APPEAL

Moreover, there is renewed interest

from institutional and other investors in

healthcare infrastructure as a resilient longterm

asset class.

Key fundamentals include secure long

leases, strong tenant covenants, and

rising demand.

This theme is supported by the recent

CBRE healthcare sentiment survey which

identified a significant increase in appetite

for healthcare investment in 2025.

For the real estate sector, healthcare

is evolving from a niche investment to a

core component of diversified portfolios,

reinforced by current market trends.

And, for investors considering

opportunities in this area, against the

backdrop of a recovering market, now is the

time to engage. n



Care home property market trends

Christie and Co has released market reports on the landscape for care home property transactions,

covering the South East, South West, and Oxford. Here, we look at the key findings

In Oxfordshire, The Old Vicarage was sold to Hanning Homes

OXFORDSHIRE — A BUOYANT AND

COMPETITIVE LANDSCAPE FOR

CARE HOME SALES

Charles Philips, director of care at

Christie & Co, said demand for care

homes across Oxfordshire remains

exceptionally strong.

However, a key challenge in the current

market is that available stock is limited.

There is significant potential for further

development in the area, with a forecasted

shortfall of over 1,500 wetroom bed

spaces by 2035.

“At Christie & Co, we’re seeing consistent

interest across the board, with demand for

both trading care homes and development

sites,” adds Philips.

“Buyers range from first-time entrants to

experienced regional operators and national

investment firms.

“Many are seeking residential dementia

homes with 25-60 beds, especially

those with potential for value-adding

extensions and a strong management

team in place, ideally with a long-serving

registered manager.

“This competitive environment is driving

multiple bids on available properties, with

some sales exceeding guide prices.

“It’s an excellent time for vendors, as

prices remain robust and funding continues

to be accessible.”

Alongside the scarcity of stock, another

hurdle for buyers are the challenges from

the CQC, particularly in processing

registration applications.

A recent example illustrating current

market conditions is the sale of The Old

Vicarage in Oxfordshire.

This transaction attracted multiple offers

and ultimately saw a new investor enter the

care sector, a trend Christie & Co is seeing

more frequently as the market attracts new

capital and fresh ambition.

THE SOUTH WEST — A HUGE

SHORTAGE IN BED NUMBERS,

BUT AFFLUENCE PROVIDES

SUPPORT FOR A SUSTAINABLE

FEE-PAYING MARKET

Property experts are predicting a huge

shortage in the availability of elderly care

home bed numbers in the South West of

England by 2035.

This competitive environment is driving multiple

bids on available properties, with some sales

exceeding guide prices

According to the data, the proportion

of the population in the South West aged

over 65 years is 35% higher than the UK

average, and the proportion aged over 85

years is 38% higher.

Alongside this, average house prices

across the region sit 10% above the UK

average, with 41% of the population

owning their home outright — this is 24%

ahead of the average.

These elevated levels of affluence provide

support for a sustainable private fee-paying

care home market, the report states.

To cater for the increasing-elderly

population in the region, there are 722 care

homes in the South West, 24% of which are

purpose-built, which is significantly below

the national average of 44%.

As a result, homes are typically smaller,

with an average of 35 bed spaces per home,

compared with the national average of 42

beds, and only 26% have wetroom facilities.

Cornwall has the lowest proportion

of purpose-built stock, at only 15% of

the total, and Devon has the smallest

proportion of stock over 40 bed

spaces, at only 11%.

And a large proportion of existing

providers report strong occupancy levels

of 90.3%, which is broadly in line with the

national average.

Since 2021, 64 care homes have closed in

the South West, resulting in a loss of 1,813

care home beds in the region.

Of those homes, the average size was 26

beds, and 53% had ensuite provision.

Over the same period, 1,914 beds have

been constructed, so there has been a net

gain of just 101 bed spaces in four years.

The average size of new registrations

in the region is 40, with Cornwall having

the lowest at 27 and Dorset having

the largest at 55.

As of June 2025, there are only 456 beds

currently under construction in the region.

Comparing the demographic demand

with the supply of elderly care beds, at

present, highlights an undersupply of

16,973 wetroom beds (full market standard

beds) across the South West.

And Christie & Co forecasts this will

increase to a shortfall of 18,289 by 2030

and 23,056 by 2035.

The largest deficit is forecasted to

be in Devon, at over 10,616 beds over

the next decade.



Somerville House care home in Willand,

Devon, was sold to Smile Care Home after

being in the same ownership for 21 years

This underscores the urgent need for

strategic planning and investment to ensure

that future demand can be met effectively.

Karun Ahluwalia, director of

healthcare consultancy at Christie &

Co, said: “Smaller, converted homes are

often well placed to cater to their local

markets, particularly in areas with lower

population density.

“However, rising demand and a shortage

of modern wetroom facilities present

a strong opportunity for regional and

corporate care operators to gain an early

mover advantage by investing in new

developments in the region.

“Alternatively, operators can look to

retrofit or reconfigure older stock that may

not align with the latest market standards,

thereby enhancing their competitiveness

and futureproofing the homes.

“With the sector evolving to meet

growing demand, strategic investment in

high-quality care facilities will not only

address existing gaps, but also position

operators for long-term success in an

increasingly competitive market.”

or have noticeable growth potential,

which are ideal for redevelopment or

alternative care use.

“We’ve seen a lot of activity in moreaffluent

commuter areas near the M25,

which has been bolstered by the strength of

brick-and-mortar values in the region due

to increasing fee rates and strong occupancy

levels” said John Harrison, director of care

at Christie & Co.

“A lot of enquiries are also coming

in from new entrants to the market,

particularly those who live near the M25

and are seeking a home that is reasonably

accessible to them.

“Kent, for example, is proving popular

among applicants from the Southern

part of the M25.

“A lot of regional operators are also

looking to expand and purchase corporate

disposal assets which are local to

their portfolios.”

However, CQC ratings are affecting the

lending appetite for some homes.

“For first-time buyers, in particular,

it can be difficult to secure the

required funding for a home if it is

rated as ‘requires improvement’ or

‘inadequate’,” says Harrison.

“However, given the needs-driven basis

of the sector, some lenders ultimately will

provide finance for these opportunities to

the right buyers.

“Of all the deals that Christie Finance

sourced funding for in 2024, 29% were for

first-time buyers looking for an average debt

of below £1m — so while it’s perhaps more

challenging, there is funding out there for

the right buyers.” n

THE SOUTH EAST —

STRONG SALES PIPELINE

ATTRACTS NEW ENTRANTS

The care market is particularly strong in the

South East, with more sales in the pipeline

than ever before, and an increasing number of

new market entrants registering to buy their

first care homes.

Smaller to mid-size individually owned

homes with between 20-30 beds make up

the majority of the stock on the market at

the moment, most of which are up for sale

due to retirement.

Buyers in the region are particularly

interested in highly-rated, well-performing

homes that can be easily taken over,

and Christie & Co is seeing a steady

appetite for homes that are either closed

Furzeham Lodge care home in the Devonshire town on Brixham

was recently sold by Christie & Co to Buckley & Buckley Homes

Of all the deals that Christie Finance sourced

funding for in 2024, 29% were for first-time

buyers looking for an average debt of below £1m

— so while it’s perhaps more challenging, there is

funding out there for the right buyers



Investment in care —

and how we can get

more of it

James Tugendhat, chief executive of HC-One, explores how

the social care sector can attract capital investment to address

the shortage in care home beds

With demand for care rising,

and the need for new care

infrastructure growing clearer by

the day, we are at a pivotal moment.

By demonstrating our value, and opening

the door to investment, we can modernise

care homes, expand capacity, and create

a more-stable, high-quality system that

works for everyone: residents, families, care

workers, providers, and the public.

READY TO GO

The foundations are already in place.

The UK has a vibrant care sector with

deep expertise, strong local presence, and

committed providers and investors.

In the 12 months since July 2024,

the sector attracted a record £4bn in

capital — an all-time high, according to

Cushman & Wakefield.

And HC-One is proud to play a key role

in this picture of investment.

With the support of our owners, we’ve

invested £110m in colleague pay and

conditions to bring over 90% of colleagues

to ‘Real Living Wage’; £93m to renovate

and upgrade our homes; and £18m in

digital transformation to combine digital

care planning, monitoring, and medicines

in a unified platform to enhance how

we provide care.

Importantly, these investments have a

direct impact on residents — from better

continuity of care through lower colleague

turnover, with our rates now sector

leading, to safer, more-comfortable living

environments and more-personalised care.

This level of investor confidence should

be seized and directed to support the next

wave of growth, particularly in areas where

care is most needed and publicly-funded

residents are underserved.

GOVERNMENT’S ROLE

We’ve been working closely with governments

to help make care investment more attractive

to committed investors by improving

funding stability, streamlining regulation,

and enabling providers to build and upgrade

with confidence.

The Government’s three-year spending

review showed a long-term commitment

to funding care, with £4bn in additional

funding by 2028/29, while the first

multi-year funding settlement for local

government in a decade will give us

the ability and confidence to better

project and plan.

Coupled with this, the UK Government’s

10-Year Plan for Health moves resources

away from hospitals to communities —

supporting homes to deliver increasinglycomplex

care in partnership with the NHS.

The Infrastructure Strategy, too, opens up

the potential for public-private partnerships

to deliver new health and care construction

in areas where demand is most acute.

Demand for care is increasing — and

responsible investment, focused on

quality and long-term value, can help us

meet it in a way that benefits residents

and communities.

We want to be ready to meet this

growing demand as part of a sector that

is sustainable, equitable, and fit for the

future of care.

With around 400,000 additional

dementia care beds expected to be needed

by 2040, there is significant scope to

develop homes that are not just modern

and efficient, but built around the

dignity, wellbeing, and evolving needs

of older people.

And this is a moment for partnership:

between government, local authorities,

investors, and providers.

This government has demonstrated itself

to be willing, and able, to unlock muchneeded

development, drive innovation, and

strengthen the sector for the future.

As the Casey Commission looks to

reform care and how it is organised, we have

an opportunity to design for ambitious,

responsible investment.

And we don’t have to start from scratch.

International examples show how smart

policy can create a thriving care market.

In Germany, consistent funding

frameworks and transparent pricing

structures have encouraged large-scale,

high-quality developments. The result



is a care system that attracts long-term

capital, delivers high standards of care, and

continues to grow.

And we can adapt this approach to

the UK, applying lessons that work

in our context.

A STRONG FUTURE

Firstly, we can make it easier for capital to

flow into care.

By lowering the cost of capital through

mechanisms like long leases, land

transfers, or access to government-backed

finance, we can encourage new builds

and modernisations, especially in areas

underserved by current provision.

Secondly, we can provide morepredictable

funding.

A fairer, clearer national approach to

funding would ensure residents receive the

care they need, regardless of where they live

or how they’re funded — creating more

equity and consistency.

Simple levels of need would give residents

and providers greater clarity and encourage

long-term planning.

And this could simplify the

commissioning process, reduce

administration, and help providers

and investors alike feel more confident

about the future.

Thirdly, we can recognise and reward

investment in modern infrastructure.

Care homes that are built or upgraded

to today’s high standards of complex and

digitally-enabled care should be recognised,

because these improvements translate

directly into better daily experiences and

outcomes for residents.

In Germany, regulated investment

cost adjustments have driven sustained

renovations, expansions, and improvements

to services, while homes delivering publiclyfunded

care in the UK do not.

A funding model that reflects investment

in quality would support new development

and ensure residents benefit from better

environments and services.

We can also strengthen local partnerships.

Councils know their communities best

and are well placed to work with providers

to target investment where it will make the

greatest impact.

By identifying high-demand areas

and offering practical support, whether

that’s through planning certainty, land

availability, or forward funding, local

authorities can play a central role in shaping

the next generation of care.

Finally, we can make resident

contributions clearer and more consistent.

Many people already pay something

toward their care. With a fair, transparent,

and strongly-regulated framework in place,

we can empower residents to choose homes

that suit their needs and preferences while

reducing pressure on council budgets.

WHERE WE CAN BE

All of this adds up to a powerful opportunity:

to define our sector as a space for innovation,

quality, and long-term value.

By improving the investment

environment, we can unlock new

developments, create rewarding careers in

care, and support older people to live well

in later life.

This doesn’t require huge new spending

or sweeping reform. It simply requires us

to remove barriers, send the right signals,

and work together to build a moresustainable

system.

Care is one of the most-important sectors

in our society, often privately delivering

a public good.

It touches the lives of millions and

underpins the dignity, wellbeing, and

independence of people across the country.

The good news is that we know what

works. We have a strong provider base,

growing investor interest, and clear

international models to draw from.

With practical steps and a shared

ambition, we can turn these strengths into a

new chapter of growth and stability.

This is a time for optimism and action.

If we seize the opportunity to enable

investment now, we can build a care

sector that is modern, resilient, and ready

for the future. n


Finance and Property Deals

Amaya Care Homes expands with buy-out

Ty Coch Nursing Home in Cardiff, South

Wales, has been sold to expanding

operator, Amaya Care Homes.

Located in the affluent suburb of Llanishen

in north Cardiff, Ty Coch was originally

a Victorian dwelling which has been

sympathetically extended over the years and

is now registered for 68 residents offering

nursing and dementia care.

Previously owned by Linc Cymru (Linc),

which merged with Pobl Group in April

2024, Ty Coch was brought to market as

part of a strategic divestment of Linc’s care

portfolio, which also included Penylan and

Capel Grange, which have also been sold as

going concerns.

Following a confidential sales process with

Rob Kinsman at Christie & Co, the home has

been sold to Amaya Care Homes.

The deal is part of Amaya’s ongoing growth

strategy to broaden its quality care services

across south Wales and follows hot on the

heels of its acquisition of Capel Grange from

Linc in January 2025.

This acquisition brings the total number

of elderly beds under Amaya’s ownership in

South Wales to 196.

Rajan Gupta, chief executive at Amaya Care

Homes, said “The acquisition of Ty Coch is

another exciting milestone in Amaya’s growth

across the region.

“The care home shares our commitment

to high-quality, relationship-centred care

and we are excited to welcome their team

into our family.

“Together, we will continue to provide

Care home to re-open as mental health facility

exceptional care and support to our residents

and their families, building on the strong

community ties established by Ty Coch.”

Kirill Bingham of Clarke Willmott represented

Linc, and Hazel Phillips of RWK Goodman

represented Amaya Care Homes in

the transaction.

Ty Coch was sold for an undisclosed price.

Christie & Co has also announced the sale

of the closed Churchfield Care Centre in

Rainworth, Nottinghamshire.

Situated in a predominantly-residential area

in the village of Rainworth, the former care

centre occupies a 1990s purpose-built nursing

home and a converted property on the same

1.27-acre site.

Together, they provide 56 beds, of which 22

have ensuite facilities.

Following a sales process with Sam

Fazackerley at Christie & Co, the home

has been purchased by Cygnet Health

Care, an independent provider of social

care services for young people and adults

with additional needs, with 150 services

across the UK.

The company plans to reopen the centre

as a complex mental health facility in the

next 12 months.

Fazackerley said: “The opportunity produced

a lot of interest and subsequently multiple

offers from specialist care operators who were

looking to redevelop the site.

“I look forward to the site being reopened

to provide much-needed housing, care, and

support for people recovering from complex

mental health needs.

“We continue to receive high levels of

interest for closed care homes across the

country from a variety of care operators who

want to either reopen the sites or redevelop

into supported living, children’s homes, or

specialist care services.”

Churchfield Care Centre was sold for an

undisclosed price.


Finance and Property Deals

Land sale progresses Whitechapel plans

NHS Property Services

(NHSPS) has announced

completion of the final phase

of the Whitechapel Road

land disposal, which sees

Queen Mary University of

London (QMUL) become the

freehold owner of the whole

Whitechapel Road site from

the Department of Health and

Social Care (DHSC).

QMUL has signed the

agreement with the DHSC, which

will enable the university, working

with partners from all sectors,

including Barts Health NHS Trust,

to create a life sciences district in

East London, driving better health

outcomes for local people and for

global communities.

The move follows the approval of

a successful planning application

for 81,000sq m of speciallydesigned

life sciences buildings

across five plots, led by NHSPS on

behalf of the DHSC.

Allies and Morrison and Gibson

Thornley have designed the

buildings, which are expected to

be completed by 2028.

Adrian Powell. director of

investment and development

management at NHSPS,

said: “We’re delighted to have

successfully delivered this project

on behalf of the Department for

Health and Social Care and in

partnership with the Queen Mary

University of London, Barts NHS

Health Trust, the London Borough

of Tower Hamlets, and other

stakeholders.

“The proposals will unlock

value and regenerate a series of

outdated buildings and empty

sites around the Royal London

Hospital and Queen Mary

University, creating a new home

for life sciences in Whitechapel.

“The development will deliver

a range of economic, health,

and social benefits for Tower

Hamlets, including the creation

of thousands of jobs, delivering

a shared life sciences ambition

as well as attracting major

investment into the area.

“Consistent with our declared

strategy, we continue to work

with our partners to ensure that

progress continues at pace

to ensure the delivery of this

long-held vision, rationalising the

existing estate and optimising it for

the health, education, and wider

communities who will benefit from

it, both now and in the future.”

The proposed transformation

of the five vacant sites has been

developed over several years

through extensive engagement

with the local community.

Creating this much-needed

space will not only deliver a new

home for life sciences, but also

deliver other benefits, including:

• Inclusive research that will

focus on improving the health

of people in Tower Hamlets

and East London.

• A significant boost to the

local economy, with workers

estimated to spend £7m to

£10.1m per year alongside

£7.5m per year generated in

business rates.

• 4,180 new jobs, apprenticeship,

and training opportunities

for local people, crucial

for supporting Tower

Hamlets’ young and fastgrowing

population.

Octopus Capital provides £13.4m loan

to leading care home operator

Octopus Capital, part of

Octopus Investments and

a leading UK specialist real

estate lender and investor,

has provided a £13.4m

lending facility to support the

development of a residential

care home in Fleet, Hampshire.

The development loan provided

to Oakland Care, a high-quality

elderly care operator and end-toend

developer across the south

east of England, will finance the

development of a brownfield site

to create a 70-bed care home over

the next two years.

The development will combine

PV panels and air source heat

pumps to create an effective

heating and hot water solution,

creating a sustainable property

that is fit for the future, while

driving bills down for the operator.

This is the first lending

agreement between Octopus

Capital and Oakland Care, with

DC Advisory acting as broker.

Jenna Hollins, investment

manager for real estate debt at

Octopus Capital, said: “The UK

care sector faces a significant

challenge due to a shortage

of quality care homes and an

increasing ageing population.

“To help address this, we’re

lending to developers that we

Image, VESTAR

can trust to build care homes we

would be happy for our own loved

ones to live in.

“By working alongside the

established and experienced

team at Oakland Care, which puts

quality and service at the heart

of its homes, we can support the

delivery of care homes that are

fit for the future and meet the

evolving needs of society.”

Joanne Balmer, chief executive

at Oakland Care, added: “We

are delighted to be partnering

with Octopus to deliver our new

70-bed care home in Fleet — a

development that represents both

a strategic growth opportunity

and a bold step forward in

sustainable care.

“At Oakland Care, we are

committed to redefining what

high-quality care looks like by

combining excellence in service

delivery with forward-thinking

environmental design.

“This home will incorporate

advanced sustainability

features that not only help

reduce environmental impact,

but also drive long-term

operational efficiencies.

“With Octopus’s backing, we

are confident in our ability to scale

responsibly while delivering strong,

values-led outcomes for residents”


Building Design

A new model for joined-up services

Mark Hitchman speaks to Healthcare Property editor, Jo Makosinski, about the opening

of Sheffield’s Canon Medical Arena, a multi-purpose sports and community arena with an

integrated medical diagnostic centre

Q: The Canon Medical Arena

recently opened. What is the aim of

the development?

A: We built the UK’s first carbon-neutral built

community arena with a multi-purpose sports

facility and integrated medical diagnostic

centre in collaboration with Park Community

Arena (PCA), Sheffield Sharks, and The

LivingCare Group.

The Canon Medical Arena was designed

to equip Sheffield with an affordable and

accessible location for local people to

participate in sports, engage in events, and

improve the overall accessibility of health

services within the community.

Q: When did the project begin — and how

long did it take?

A: Construction began in June 2022.

By March 2023, the facility was

ready for the medical diagnostic centre

fitout to begin.

This included the installation of

lead shielding for the CT and X-ray

machines and the installation of the

Vantage Galan 3T MRI.

The final months of the project included

the installation of retractable seating within

the stadium, signage, external landscaping,

an X-ray system, Aquilion Prime SP CT

scanner, and supporting IT systems.

Q: Can you tell us about the facility and

what it includes?

A: Located on Sheffield Olympic Legacy

Park, the medical diagnostic centre within

the arena is operated by The LivingCare

Group and features advanced Canon Medical

imaging systems, including AI-assisted CT

and MRI scanners, ultrasound and digital

X-ray, fluoroscopy, plus five consulting rooms,

and a minor theatre.

The arena, which has three multi-purpose

basketball courts and seating for up to

2,500, is also the permanent home for

professional basketball teams, Sheffield

Sharks and Sheffield Hatters, and netball

club, Sheffield Steel Netball.

When the courts aren’t being used for

basketball or netball, the multi-use facility

is home to sporting university students

in Sheffield, and available for hosting a

variety of other sporting events — from

dance competitions to the national amateur

karate championships — which encourage

healthy, active lifestyles.

The multi-purpose facility also includes

a studio space, a classroom, and business

meeting rooms. It is also the home of the

RESPECT programmes, which Canon

Medical has sponsored since 2018. These

enrich the lives of young people through

basketball-led initiatives, including

workshops and sports sessions aimed at

helping them break free from cycles of

negative behaviour.


Building Design

Q: What was the thinking behind the arena

and its purpose as a dual facility?

A: This blueprint is built on a belief that the

way to improve people’s overall wellbeing

is through pro-active health, sport, social

engagement, and education; creating a cycle

of future health prosperity that boosts a longer

quality of life.

The walls of the traditional hospital

environment as we know it have expanded,

and serving patient communities means

developing ideas and new processes of how

we build, adapt, service, and maintain new

community-based healthcare facilities.

It’s exciting — and it’s most

certainly essential.

The dual facility also provides the South

Yorkshire region with its first specialist

sports diagnostic imaging facility that

will translate elite-level health, injury

and rehabilitation learnings to routine

clinical practice.

This will enable early detection,

prevention, and faster rehabilitation

for sports injury and illness, as well as

providing pre-season medicals and sports

injury services to professional, elite, semiprofessional,

and committed athletes.

Q: What considerations were made in the

design and construction of the building

to ensure it was fit for multiple purposes?

Were there any hurdles to overcome?

A: As a multi-purpose arena, there were

many considerations in the design and

construction of the space.

On the south side, the roof includes

a striking overhang that provides solar

shading at the entrance point.

The first-floor windows incorporate

brise-soleil shading — louvred architectural

features that allow low-level sunlight into

the building during mornings and evenings,

while blocking out intense midday sun and

heat, thereby reducing the need for cooling.

In contrast, the north side has a shorter

overhang with no shading, maximising solar

gain for natural light and warmth.

And a ‘fixingless’ roofing system was

selected, which does not require screws for

installation, significantly reducing the risk

of rainwater leaks.

For the diagnostic centre, the facility was

designed to provide end-to-end medical

care for services such as scanning, cancer

screening, pain management, orthopaedics,

urology, cardiology, and physiotherapy, all

under one roof.

Installing the MRI, CT, and X-ray suites

required meticulous co-ordination and care

due to the physical complexity of building

requirements involved in housing advanced

diagnostic systems.

Careful planning also ensured these

suites were successfully integrated into the

existing arena structure, along with adjacent

control and technical rooms equipped

with innovative systems to support

daily operations.


Building Design

On the first floor, the position of the

minor theatre and the associated recovery

rooms was carefully planned to create

a single-route patient flow, ensuring

an efficient and smooth experience

for all patients.

Patients and staff were central to the

design of the diagnostic centre. The

layout was crafted to prioritise privacy,

functionality, and a positive user experience.

Thoughtfully-planned features include a

dedicated staff area with changing rooms,

toilet facilities, and a rest area with relaxing

imagery to improve the overall ambience.

Designated changing rooms and toilets

are provided for patients while, within the

MRI and CT suites, ‘patient experience’

lighting and floor-to-ceiling imagery

have been installed to create a soothing

environment and help alleviate the anxiety

often associated with medical procedures.

Accessibility was also a priority, and a

passenger and trolley lift were installed.

Reception and waiting areas were

designed to be comfortable and welcoming,

again helping to ease the anxiety often

associated with medical visits.

A dedicated cannulation room and

separate zones for clean and dirty utilities

were also incorporated.

Another key advantage was the

arena’s accessible location, with frequent

Patients and staff were central to the design of

the diagnostic centre. The layout was crafted to

prioritise privacy, functionality, and a positive

user experience

tram services and real-time travel

information screens in reception areas.

In addition, extended opening hours are

sometimes offered to provide greater

appointment flexibility.

When it came to the sporting side of the

arena, for example, the floor was designed

to accommodate a range of sports and

we installed acoustic panels on the walls

and roof to improve sound quality and

remove any echo.

To reduce downtime between events, and

be able to transform the venue easily, we

invested in electronic retractable seating,

electronic lighting rigs, and electronic nets

for fast set-up.

Outside of the main arena, we created

additional multi-purpose studios for sports

on a smaller scale, as well as sports changing

facilities, café amenities, meeting rooms,

and classrooms.

By including demountable partition walls

between some of the rooms, it provided

the flexibility to set up as one large or two

smaller rooms, as and when required.

Q: Now that the arena is open, how is it

positioned to address some of the current

health inequalities in the region by acting as

a unique catalyst for wellbeing and society?

A: Sheffield is the fifth-largest city by

population in England and is tackling

considerable challenges, including poor

life expectancy, educational attainment,

unemployment, and housing.

Currently, the difference in life expectancy

between the best and worst off in Sheffield is

20 years, or 25 years for women.


Building Design

Since opening, the medical diagnostics

centre has already helped to bring better

healthcare to the local community with

closer-to-home medical appointments,

as well as improving access to health

screening and disease prevention for those

who need it most.

Meanwhile, the multi-purpose sports

arena continues to provide the community

with access to sports facilities, leading to

healthier lifestyles and improved wellbeing.

Q: How does the facility serve as a potential

blueprint for the way healthcare could be

delivered in the future?

As people live longer and our population

continues to grow, the demand for healthcare

is rising rapidly.

However, our hospitals can only treat so

many patients a day.

With the number of diseases growing

and becoming more complex, the treatment

plans medical professionals provide

need to be efficient to avoid further

appointments and treatment.

The arena is an example of how we can

shift some of the growing demand for

medical diagnostics away from hospitals

to the local community, encourage a more

pro-active approach to healthcare, and

add facilities to a community that foster

health and wellbeing.

Q: What long-term benefits will Canon

Medical Arena bring to Sheffield?

A: Sadly, there are still areas of inequality in

the UK where wellness is still determined by

socio-economic group or postcode — and

this is something that we are working to

address in Sheffield by bringing healthcare

and wellbeing through physical activity closer

to the community.

Together as a society, we must

continue to work together to support

the migration towards a pro-active

approach to healthcare, underpinned

by access to affordable sports education

and wellbeing facilities, and the NHS’s

preventative aims to screen, detect, and

diagnose earlier.

We need to be able to get to a point

where we can start examining people who

are asymptomatic, but have notable risk

factors, such as those over the age of 50,

smokers and/or with a family history of

diseases/illnesses.

Being able to examine people ahead

of any potential health issues means that

medical professionals can be proactive in

their treatment plans.

I really do believe that early intervention

can radically improve treatment outcomes

and save lives. n

The arena is an example of how we can shift some

of the growing demand for medical diagnostics

away from hospitals to the local community,

encourage a more pro-active approach to

healthcare, and add facilities to a community

that foster health and wellbeing


Building Design

Wood makes a comeback in

healthcare construction

Jo Makosinski speaks to Tye Farrow of Farrow Partners Architects to find out why UK healthcare

construction projects rarely utilise the healing benefits of timber — and why they should!

Q: Wood is not a favoured material

for the majority of healthcare

developments, why is this?

A: It has not been the preferred material for

the structure of healthcare developments, I

believe, because of knowledge, familiarity, and

regulatory frameworks in the industry.

Steel and concrete were seen as the

‘modern’ building materials for the delivery

of institutional buildings, for the rapid

expansion of this sector beginning in the

1930s and until recently.

Architects and engineers are very

knowledgeable with steel and concrete

structural systems, specifically for

healthcare institutional buildings, but

haven’t had much experience in using wood.

Similarly, constructors aren’t familiar

with the subtleties of working with timber

structures, specifically in healthcare

institutional buildings, and thereby add a

premium to the structural system.

Also, until recently, the use of timber

in healthcare institutional buildings from

a regulatory standpoint has either been

banded or very limited in its use.

However, this has been changing as the

design and construction professions have

refamiliarised themselves with the use of

mass timber in multi-residential, education,

office, and manufacturing building

types, and the knowledge and benefits of

the system have been trickling into the

healthcare sector.

This has occurred as healthcare estates

are focused on reducing their carbon

footprints and increasing their positive

ESG reporting, along with realising the

occupant health benefits of building

in mass timber, and the rapid assembly


Building Design

… design and construction professions have

refamiliarised themselves with the use of mass

timber in multi-residential, education, office,

and manufacturing building types, and the

knowledge and benefits of the system have been

trickling into the healthcare sector

and offsite fabrication characteristics of

the system are offering attractive costsaving

benefits.

We designed our first two hospitals

using mass timber in the late 1990s

and early 2000s.

At the time we were using the

material primarily in the public areas of

the hospitals.

Yet, to allow this to occur, we needed to

bring in a new fire suppression sprinkler

system and do full text mock-ups of it in use

in a lab in order to gain regulatory approval.

Recently we just opened our design

for the flagship new cancer centre in the

ancient city of Jerusalem, a city that has

been built in stone for thousands of years,

and their building codes don’t recognise

the use of wood.

In this instance we used mass timber for

the exterior structure and roofs and the

interior main public area spaces.

Currently in North America and

Europe, entire hospital structures, for all

components of the hospital, are being

designed using wood.

Q: In your opinion, why should wood be

considered more for healthcare projects?

A: Beyond wood’s benefits for reducing

operational carbon footprints and increasing

positive ESG reporting, as well as the offsite

fabrication characteristics of the system

offering attractive cost saving benefits, are the

human health benefits of building in wood.

On an emotional level, wood has been

shown to give occupants of a building the

impression of timelessness; connecting to

something greater than themselves.

Every piece of wood is unique and

authentic, which conveys realness and

rootedness, which implies sincerity and

dignity in places where staff are stressed,

and patients on their back foot.

The use of wood in buildings has been

shown to increase wellbeing, improve

concentration and learning, and lead

to greater personal and professional

satisfaction.

For example, when students have

access to learning environments with

wood finishes, they experience reduced

anxiety levels.


Building Design

Every piece of wood is unique and authentic,

which conveys realness and rootedness, which

implies sincerity and dignity, in places where staff

are stressed, and patients on their back foot

As well, student learning and test

performance are better in wood

environments than in spaces with mostlyartificial

finishes.

The restorative effects of wood have also

been documented in medical facilities.

The oft-cited research of Roger Ulrich

on the power of nature and healing found

that when patients had access to views of

trees from their rooms, they recovered

more quickly and had fewer post-operative

complications.

In addition, wood structures in medical

and long-term care facilities inspire hope, as

demonstrated in a 2014 Finnish study that

recorded residents’ subjective experience in

their exposure to wood interiors.

Wood structures also make

employees happier.

In LEED-certified and green buildings,

particularly those with wood structures,

there is greater employee retention, reduced

burnout, and higher recorded levels of

workplace satisfaction and wellbeing.

The emotional, physiological, and

psychological benefits of the healing

properties of wood make it well worth

finding ways to incorporate wood into all

building types, beyond just incorporating

it for its well-known ecological and carbon

storage benefits.

Wood is not just beneficial to

cognitive health though, but to physical

health as well.

A meta-analysis published in the Journal

of Wood Science in 2017 by Harumi

Ikei, Chorong Song, and Yoshifumi

Miyazaki, which reviewed papers on the

physiological effects of wood on humans,

found that sensory intake from woodderived

olfactory, auditory, tactile, and

visual stimulation resulted in a host of

physiological benefits.

Olfactory stimulation by the scents of

pine, cedar, and cypress chips reduced

participant blood pressure and cortisol

levels; and auditory stimulation from the

tapping of wood planks calmed theta and

beta waves in the brain, indicating a greater

sense of relaxation and calm.

This research is supported by a

Norwegian study on healthcare workers’

preferred levels of wood finishes in

medical facilities.

The study showed that they preferred

intermediate levels of wood finishes,

around 50% of the surface area, in inpatient

room settings. This research points to the

therapeutic power of natural materials on

sensory perception and their potential

application for improved wellbeing in

healthcare facilities.

In addition, wood structures in

elderly care facilities have been shown

to inspire hope, as demonstrated in

the aforementioned Finnish study that

recorded residents’ subjective experience of

their exposed wood beam facility.

The restorative effects of wood can also be

seen in the very young: neonatal units with

wood finishes have been shown to improve

sleeping habits of newborns by 20%.

And our study of the benefits of

mass timber in elderly care facilities for

Vancouver Coastal Health in British

Columbia, Canada, presents a resident

in a room with approximately 30%

wood finishes.

The ceiling over the resident’s bed is fitted


Building Design

with 10ft-wide exposed CLT panels, as is

the wall next to the exterior wall.

This use of wood frames views to the

exterior, strengthens the connection to

outdoor, ecologies, and increases overall

exposure to nature and natural materials.

Q: What needs to be done to make the

use of wood and timber more appealing,

particularly to infection prevention

and control leads?

A: From an infection control standpoint, the

feedback we often get is that we don’t want to

use any organic materials in a hospital because

of their absorbent qualities. Yet, when we

explore this further, we find that most hospital

structures, interior walls, and furniture

are made of organic materials: concrete

structures, plaster/paper clad interior drywall,

and wood chip board millwork cabinets.

All of these have a paint or similar sealant

on their exterior for infection control or fire

protection properties.

This is no different than the use of mass

timber in hospitals, which are sealed for

the same reasons.

Curiously, having gone through COVID,

natural materials such as wood, compared

to synthetic materials, have better

antimicrobial properties, and studies show

it is cleaned as easily as glass, steel, or plastic.

All timber structural systems generally

have a shorter structural span compared

to concrete or steel, and vibration

characteristics are higher than other

conventional systems.

In that light we need to assess what

singular system should be used in what

portion of a healthcare setting.

Q: What can we learn from the use of

timber on healthcare projects in other

countries (Scandinavia etc)?

A: What we have learned from using wood in

our hospitals in North American through to

Isreal, is being very intentional on where in a

building, and why, we are choosing to use it.

All timber system are great for public

areas, ambulatory care settings, and

inpatient units, due to the shorter structural

Hospitals are where we go to improve some

health outcomes. In that light we need to imagine

the materials and spaces we create as non-invasive

therapeutic treatments, and the use of wood in

these environments is a proven nutrient for the

staff, families, and patients that use them

spans and the ability to expose more

of the material.

Hybrid wood and steel or concrete

systems might be better for diagnostic or

operating suite settings. Or, if the vibration

sensitivity is very high, a steel system for

specific areas.

Also, in single-level buildings, the

floor provides the vibration dampening

characteristics, while the ceilings

can be timber.

In multi-level buildings, the lower levels

could be traditional systems, while the

upper-level inpatient areas could be timber,

such as has occurred in a new European

hospital, where exposing the wood

ceilings is beneficial for patients' mind

health while healing.

Hospitals are where we go to improve

health outcomes. In that light we need to

imagine the materials and spaces we create

as non-invasive therapeutic treatments, and

the use of wood in these environments is a

proven nutrient for the staff, families, and

patients that use them. n


Building Design

Design Guide for Long-Term Residential Care Settings for Older People – Public Consultation Report

Changing the approach

to care home design

The Irish government is considering issuing guidance on the future

design of care homes. Here, we look at the key findings of a public

consultation into the proposals

Design Guide for Long-Term

Residential Care Settings for

Older People

Public Consultation Report

January 2025

Concerns have been raised over plans by

the Irish government to create design

guidance for elderly care settings, with

cost, location, and capacity all cited as barriers

to widespread adoption.

Earlier this year the Department of

Health in Ireland — An Roinn Slainte

— launched a public consultation into

its proposed Design Guide for Long-Term

Residential Care Settings for Older People.

The document aims to articulate best

practice in the design of care facilities and

provide a common benchmark against

which the standard of these settings can be

measured, without limiting innovation.

And it seeks to balance the need for

people to live well, maintain relationships

with family and friends, and exercise

autonomy and control with other

considerations, including infection

prevention and control (IPC).

However, while the focus on creating

more-homely environments for elderly

residents was widely welcomed, the

consultation sparked concern, with cost

being a key stumbling block for many

respondents, who included families of care

home residents, healthcare professionals,

nursing home providers, nursing home

representative bodies, researchers,

local authorities, and advocacy groups

for older people.

DOES IT ADD UP?

They were worried about the overall costs

of implementing the guidelines and the

adequacy of the current funding model for

long-term residential care — the Nursing

Home Support Scheme (NHSS).

And they feared the cost of adopting the

proposed ‘household’ or ‘Teaghlach’ model,

which would restrict the size of nursing

homes to a maximum of 84 beds in small

clusters of 12, would prove prohibitive

to operators and investors in an era when

smaller nursing homes have been closing

because of financial viability challenges.

One respondent said: “By restricting the

number of beds permitted, the guide may

inadvertently discourage investment in new

builds or renovations of existing facilities.

“Thus, while the aim of enhancing quality

is commendable, the practical implications

of the proposed design guide may not align

with the overarching goal of improving

long-term residential care settings for older

people in Ireland.”

And one nursing home provider revealed

that homes it is currently building must

have approximately 150 beds in order to

spread the significant fixed costs.

Another stated that a minimum of 90

beds would be required to make any home

financially viable.

Return on investment was a key concern

throughout the consultation, with several

respondents stating that the increased

construction costs associated with

following the guidance would negatively

affect the economic viability of building

nursing and care homes.

CHOOSING A SITE

Similarly, it was asserted that favouring sites

in more-central locations, which are served by

good transport links, will result in increased

site costs, and that building costs are likely

to increase as the proposed location of sites

are more likely to be brownfield sites, with

increased risks and construction fees.

It was also stated that a potential

consequence of the draft guidelines is that

new nursing homes will be located on lessexpensive

sites which can accommodate the

lower density required, and that such sites

may be located a significant distance from

urban areas and in locations poorly served

by public transport.

Commenting on the guidelines for

the design of the homes themselves,

the focus on a more-homely

environment was welcomed.

One respondent said: “The need to

provide a domestic-style kitchen which

is accessible to residents who live in the

household is a shift in current thinking that

we welcome and should allow people to

continue to participate in valued domestic

Prepared by the Department of Health

activities of daily living as well as a space for

a cup of tea with family and friends.

“This type of approach to design will

undoubtedly better support the wellbeing

and quality of life of people living in

these facilities.”

Another said: “While we recognise the

positives from this guide, we have an ageing

population and will require more beds for

this population.

“This current guide will significantly

deter investors and providers from

developing future facilities as it is not

practical within the current funding model

and suitable staff availability.”

BEST IN CLASS

And a third respondent stated: “We believe

that there is a real risk that this guide may

become more aspirational rather than, as is

intended, a catalyst for new ‘best-in-class’

projects and the delivery of much-needed

long-term residential capacity.”

The design guide also covers outdoor

spaces, which, it states, should be easily

accessible all year round.

One respondent said: “We welcome

the need to provide outdoor space that

is independently accessible for all people

living in the care service and that people

should be able to choose to spend extended

periods outdoors.

“This is particularly important for

residents’ participation in leisure activities

and spending time outdoors with other

residents, family, and/or friends.”

But there were also calls for the guide

to include a priority for appropriate

landscaping in terms of resident safety and

accessibility, and to promote biodiversity

of native flora and fauna, minimise sound

disruption from surrounding areas, and put

1


Building Design

more emphasis on promoting facilities such

as resident gardening plots, vegetable plots,

and outdoor seating/cafe dining.

GOOD HEALTH

One respondent noted: “As the resident’s

environment shrinks into a compact space,

the need for a part of the accessible space

to be a sensory garden is pivotal to good

quality health.

“As we age, the power of tactile

stimulation is required, so a sensory garden

will offer this to the residents: raised

beds with tactile plants, highly scented

plants, edible plants, a sense of caring for

something other than oneself, will give a

sense of ownership and belonging which

increases a sense of worth and wellbeing.”

Another key theme which emerged in

the consultation was the importance of

co-design when it comes to planning and

designing long-term residential care settings

for older people.

This was highlighted both in the case of

new builds and for the refurbishment of

existing facilities.

STIFLING INNOVATION

And they warned that the guide might

have the unintended result of stifling

innovation in the sector.

“While the draft guide states that the

model of care provided, as outlined in the

Statement of Purpose of the nursing home,

is a key determinant in all building design

considerations, it goes on to describe and

allow for only one model of care,” said

one respondent.

“Residents in nursing homes are not a

homogeneous group and the care needs of

all need to be considered.”

Another said: “Operators and

developers of facilities should be allowed

to innovate and promote different forms of

accommodation, including configuration,

while always in compliance with

national standards, including legislative

requirements around planning and

building regulations.

“Enforcing one form of provision

(even where it is capable of being funded,

operated and built) not only stifles

innovation, but also assumes everyone

wishes to be catered for in a singular

type of facility.”

Commenting on the findings of the

consultation, which will now be considered

before a final document is published, a

Department of Health spokesman said: “It

is worth highlighting initially that there was

broad agreement among the respondents

to the public consultation that residential

care should be provided in high-quality

built environments that support positive

‘Do you think that the draft design guide will be helpful when designing, planning, and

constructing long-term residential care settings for older people?’

The responses to this question were overwhelmingly positive, both for individuals and

organisations/representative bodies. In both cases, over 80% of the respondents indicated a

positive response (see the pie charts below for a representation of the results).

‘Do you think that the proposed design guide will contribute to improving the quality of

long-term residential care settings for older people in Ireland?’

Again, the responses to this question were extremely positive in the case of individuals and

organisations/representative bodies. In both cases, over 70% of the respondents indicated

a positive response to the question posed (see the pie charts below for a representation

of the results).

experiences and outcomes for older people,

and that the draft design guide would

contribute to achieving this objective.

“Submissions consistently highlighted the

fact that a residential care setting is an older

person’s home, and that built environments

that are homelike, and less institutional,

would be extremely beneficial for the health

and wellbeing of older people, and especially

those with dementia.

ACCESS TO NATURE

“The focus in the design guide on the proper

location of residential care settings and the

integration of these settings with the local

community was also widely commended

as was the provision of appropriate access

to outdoor space.

“Despite the commitment of all

stakeholders to ensuring the highest-quality

built environments for older people, a

number of possible challenges associated

with the draft design guide were identified.

“There was a concern expressed by

some respondents to the consultation

that the draft design guide, including its

wording, may be open to interpretation,

and may therefore be difficult to apply

consistently and fairly.

“Ultimately, the public consultation for

the Design Guide for Long-Term Residential

Care Settings for Older People revealed

the broad agreement that high-quality

design, planning, and construction, is

vital in creating safe built environments

that enable high-quality residential care

for older people.

“The consultation also highlighted

several important areas that will

require further investigation and

clarification before the finalised guide is

implemented.” n


Building Design

The silent pandemic

A

new report is calling for an ‘urgent

rethink’ of the way hospitals are

designed, built, and maintained in

an effort to reduce healthcare-associated

infections (HCAIs).

The nine-page document, entitled The

Silent Pandemic: Antimicrobial Resistance

and the Need for Better Hospital Design, has

been published by the Healthcare Infection

Society (HIS) and highlights the need for a

fresh approach to the delivery of healthcare

infrastructure in light of the estimated 200

deaths which occur around the world every

hour as a result of HCAIs.

Image, Mohamed Hassan from Pixabay

Report advocates an ‘urgent re-think’ on hospital design, construction,

and maintenance to reduce HCAIs

Supported by built environment

consultancy, Sidara, the report follows a

high-level workshop held in March and

brings together insights from infection

prevention and control (IPC) experts,

architects, engineers, and healthcare

construction professionals.

And it explores the systemic failures that

allow infection risks to persist in healthcare

settings and outlines practical, collaborative

solutions to embed IPC at the heart of

hospital infrastructure.

FORWARD THINKING

The problem, it states, is that IPC

professionals are often brought into hospital

design projects too late — typically after

contracts are signed, designs are finalised, and

construction is already underway.

This results in missed opportunities to

integrate infection prevention and control

into fundamental design decisions.

It also identified poor communication

between stakeholders and a lack of

regrouping when cost-saving measures are

implemented, designs are changed, and

installation has to be adapted, leading to

compromised infection prevention and

control measures.

And it criticised the lack of a formal

review process to capture and share lessons

learned from past projects.

As well as highlighting the shortfalls

in current approaches, the report also

makes a number of recommendations for

improvement, including:

• Involving IPC professionals from the

earliest stages of design and planning

• Introducing mandatory IPC training

across disciplines

• Standardising best-practice design

frameworks for infection prevention

• Leveraging innovation, including AI

and IoT, to improve monitoring and

reduce human error

• Balancing clinical needs with sustainability

goals without compromising safety

As a direct outcome of this work, HIS

has announced the formation of the

Built Environment Infection Prevention

Initiative (BEIPI) — a cross-sector

taskforce dedicated to embedding

infection prevention principles into the

design, construction, and operation of

healthcare settings.

“The creation of BEIPI is a vital next

step,” said HIS chair, Dr Manjula Meda.

“We need to move from conversation

to co-ordinated action — making

infection prevention a fundamental

requirement of every healthcare build and

renovation project.”

A more-comprehensive white paper will

follow in the autumn. n

We need to move from conversation to coordinated

action — making infection prevention

a fundamental requirement of every healthcare

build and renovation project


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Each edition covers…

ENVIRONMENTAL

Sustainability, carbon reduction,

and energy efficiency news,

features, insight, and case studies

PROJECTS

The latest building projects in

health and social care

FINANCE

Key drivers behind the health and

care property investment markets

and procurement insight

PROPERTY NEWS

The latest property deals

MARKET INSIGHT

An overview of the key issues

impacting the property sector

(construction figures, reports,

industry comment etc)

DESIGN & BUILD

Best practice approaches to the

design and construction of the

health and social care estate

ESTATES & FACILITIES

The latest issues impacting estates

and facilities management practices

in health and care settings

PRODUCT

Focus on building products which

are helping to boost health and

social care environments

PEOPLE

Movers and shakers within health

and social care


Estates and Facilities Management

Smarter lighting: Healthier spaces:

a new priority in healthcare design

Martin Heaward of Gewiss explains the consequences of relying on a product-first approach

when choosing healthcare lighting solutions and outlines the importance of working alongside

electrical partners to create high-performing, effective, and resilient solutions which meet current

and future needs

As healthcare estates evolve to meet the

growing demands of modern care, the

spotlight is shifting.

No longer is lighting merely a

background utility. It is emerging as a

strategic asset, influencing everything

from patient recovery and clinical

efficiency to sustainability targets and

operational resilience.

Yet, despite this critical role, lighting

infrastructure is often viewed through

a ‘product-first’ lens — a procurement

decision based on cost, familiarity and/or

historical precedent rather than long-term

performance and adaptability.

But, in a sector where buildings must

serve communities for decades, and

respond to rapid changes in care models

and technologies, this mindset risks

selling estates short.

MEETING NEEDS

Lighting used to be considered a basic

utility — install it, switch it on, and

forget about it.

But, with increasing emphasis on

patient wellbeing, staff performance,

sustainability, and digital readiness,

expectations are changing.

Today, lighting must do far more than

simply illuminate a space — it plays a vital

role in shaping the experience of those who

live, work, and heal within it.

In a mental health unit, lighting must

foster a sense of calm, comfort, and security,

helping to reduce agitation and support

emotional wellbeing.

In a surgical suite, it must deliver the

clarity and precision clinicians rely on for

critical procedures, without contributing to

visual fatigue.

And, in a retirement living setting,

lighting must fulfil three key functions:

promoting independence by improving

visibility, minimising fall risks through



Today, lighting must

do far more than

simply illuminate

a space — it plays a

vital role in shaping

the experience of

those who live, work,

and heal within it

University Medical Center, Schleswig-Holstein, Germany

thoughtful placement and contrast, and

supporting residents’ natural circadian

rhythms to enhance sleep quality and

overall health.

Across every healthcare environment,

lighting is not merely a functional necessity

— it is an active contributor to safety,

mood, orientation, and healing.

It shapes not just the physical

surroundings, but the emotional and

psychological landscape as well.

MANAGING BUDGETS

With healthcare property teams under

immense pressure managing budgets,

navigating regulatory compliance, and

ensuring operational continuity across ageing

infrastructure, it is understandable that

decisions around lighting are often driven by

immediate, practical concerns: What’s readily

available? What’s most affordable? What has

been used in the past?

But this product-first approach carries

inherent risks.

When components are selected in

isolation, without considering how

they interact within the broader

system, the result can be a fragmented

lighting environment.

This might manifest as uneven light

distribution, clashing aesthetics, inefficient

energy performance and, ultimately, higher

lifecycle costs due to frequent maintenance

or premature replacements.

More critically, this short-sighted

approach can hinder long-term adaptability.

Without a cohesive strategy, facilities

may find it difficult, and costly, to upgrade,

scale, or integrate emerging technologies as

needs evolve.

And, in fast-changing healthcare

environments, where flexibility is

increasingly essential, this lack of foresight

can become a major obstacle to progress.

ADAPTABILITY

The best lighting solutions aren’t selected

from a catalogue, they’re shaped through

collaboration.

When healthcare providers involve

experienced and knowledgeable electrical

partners early on in the process, they can

create lighting systems that go way beyond

immediate requirements — delivering

scalability, sustainability, and long-term

adaptability.

A good partner goes beyond delivering

a product — they help you see the bigger

picture. And they will work with you to

assess the environment and its purpose,

understand usage patterns, anticipate

evolving care models, and develop bespoke

lighting strategies that deliver both

performance and value throughout the

building’s lifecycle.

When lighting is considered early in the

design phase as part of a comprehensive

Paris-Saclay Hospital, France



Centre for Integrative Psychiatry, Germany

electrical infrastructure strategy, it

presents significant opportunities for

healthcare providers:

• Energy efficiency: Smart lighting

systems can adapt based on occupancy,

daylight levels, or scheduled usage,

reducing unnecessary energy

consumption and driving down

operational costs

• Staff and patient wellbeing: Lighting

systems that adjust colour temperature

throughout the day support circadian

rhythms, improving sleep patterns and

overall health. Proper illumination

can also reduce fatigue and boost

staff alertness, directly impacting

quality of care

• Ease of maintenance: Modular,

maintainable luminaires with replaceable

components support the circular

economy and reduce downtime, ensuring

the facility remains operational and costeffective

for the long term

• Digital integration: Lighting

systems can be part of a broader smart

infrastructure — integrating with

HVAC, emergency systems, and building

management platforms to offer enhanced

control, remote monitoring, and

predictive maintenance

• Future flexibility: Systems designed

with connectivity and scalability in

mind can evolve as the estate evolves —

supporting expansion, refurbishment, or

even a complete change in use

Working closely with electrical partners

from the outset can ensure that lighting

simulations are created that model lux levels,

visual comfort, and energy consumption

across an entire facility, allowing systems to

be fine tuned to meet exact specifications

and ensuring that what’s promised in theory

works in practise.

SUSTAINABILITY

Increasingly, the lighting conversation is also a

sustainability conversation.

Healthcare providers are under growing

pressure not just to reduce energy usage, but

to demonstrate tangible progress toward

circular economy principles.

This is where maintainable, upgradeable

lighting systems come into their own.

Instead of ‘rip-and-replace’ solutions,

the future lies in modular luminaires with

replaceable LED drivers and optics —

components that can be updated without

discarding the whole fitting.

Any design philosophy must be rooted

in longevity so that healthcare property

operators can benefit from extended asset

life, reduced environmental impact, and the

successful accomplishment of ESG goals.

Whether you’re lighting an intensive

care unit or a patient waiting area, the right

strategy starts with the right partner —

someone who can translate clinical and

operational requirements into resilient,

scalable systems that deliver lasting value.

Healthcare property leaders who

recognise lighting as a strategic asset,

and collaborate with experts to deploy

futureproof solutions, will not only

enhance clinical settings, reduce costs, and

improve user experience, but also position

their estates for long-term success. By

prioritising adaptable lighting systems,

they will ensure that their facilities can

respond effectively to changing healthcare

demands, technological advancements, and

evolving care models.

This will help them to maintain

operational efficiency and patient wellbeing

while safeguarding investments, making

their estates resilient and ready for whatever

the future holds. n

Whether you’re lighting an intensive care unit

or a patient waiting area, the right strategy

starts with the right partner — someone

who can translate clinical and operational

requirements into resilient, scalable systems that

deliver lasting value


12 February 2026

London Hilton on Park Lane

Lead the way in healthcare design

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HEALTHCAREDESIGNAWARDS.CO.UK

Environmental

The Velindre Cancer Centre:

Setting a new benchmark for net-zero

healthcare infrastructure

Sophie Crocker from White Arkitekter provides an insight into the design of the new Velindre Cancer

Centre, a low-carbon facility which is setting a benchmark for sustainability

As the NHS works to decarbonise

its vast estate and meet ambitious

climate targets, all eyes are be on a

56,670sq m infrastructure on a 7,86-hectare

site currently under development in

North Cardiff.

The new Velindre Cancer Centre is not

only set to be a state-of-the-art treatment

facility; it is a bold experiment in delivering

a complex, high-performing healthcare

building to net-zero carbon standards.

For the healthcare property sector, this

is more than a headline — it is a live case

study in how carbon, care, and cost can

(and must) converge.

WHY NET ZERO

MATTERS IN HEALTHCARE

The NHS is responsible for an estimated

5% of UK carbon emissions, with buildings

making up a large share of that footprint.

And, given that healthcare buildings

often operate 24/7, have stringent technical

requirements, and are built to last decades;

the stakes could not be higher.

The Welsh Government’s Future

Generations Act, and its own net zero by

2050 commitment, add regional urgency —

and an incredible opportunity.

With many NHS estates approaching

obsolescence, a wave of redevelopment

is inevitable.

The question is how we will build the

hospitals we need to be climate resilient

for the future.

For the healthcare property sector, this is more

than a headline — it is a live case study in how

carbon, care, and cost can (and must) converge


Environmental

DESIGNING FOR

CARBON AND CARE

Currently under construction on a greenfield

site in North Cardiff, the new Velindre

Cancer Centre will serve as a specialist facility

delivering chemotherapy, diagnostic imaging,

clinical trials, and radiotherapy.

Scheduled to open in spring 2027, it

will have nine radiotherapy bunkers —

made up of eight clinical linacs and one

research bunker.

Beyond its clinical ambition, the new

Velindre Cancer Centre is being designed as

a high-performance, low-impact building:

• The superstructure features a mass

timber-framed, three-storey atrium — an

unprecedented move in UK healthcare —

which locks in carbon and reduces reliance

on carbon-intensive concrete and steel

• Concrete-alternative shielding blocks

have been specified for the linear

accelerator bunker walls to offer a reusable,

demountable solution as opposed to

poured concrete

The project is targeting BREEAM 'Excellent'

and has been designed to align with the RIBA

2030 targets for commercial buildings (as

healthcare targets are not specified) — a rare

achievement for a hospital.

The current aim exceeds the target for

commercial buildings.

Meanwhile, the Energy Use Intensity

(EUI) is projected to be significantly less

than the average hospital currently.

All internal materials have been

painstakingly evaluated for environmental

performance across their lifecycle,

from manufacture through installation

to end of life.

This analysis has the bonus effect of

resulting in materials which also support

occupant health and wellbeing with low/no

VOCs, natural antibacterial properties, and

biophilic effects.

Operational systems will include

Air Source Heat Pumps and rooftop

photovoltaic panels.

No energy will be produced by fossil fueloperated

systems, with the centre designed

to be an all-electric building.

And over 10% of the site’s electricity use

is projected to be generated on site through

renewables — PV panels.

Together, these measures position the

new Velindre Cancer Centre as a testbed for

whole-life net zero thinking, both in terms of

upfront design and long-term performance.

THE BIGGER OPPORTUNITY

For estate managers, design teams, and

investors alike, Velindre offers a new model:

one that proves that clinical complexity

does not have to come at the expense of

sustainability.


Environmental

In fact, the long-term benefits are clear:

• Lower operational costs through improved

energy efficiency and renewable generation

• Improved patient and staff environments,

with healthier materials, better air quality,

and access to natural light

• Positive public perception, especially for

NHS trusts under increasing pressure to

demonstrate environmental leadership

• Futureproofing against regulation, rising

energy prices, and insurance risks linked to

climate exposure

The project also serves as a real-time

laboratory for low-carbon procurement,

supply chain engagement, and modern

methods of construction.

RISKS AND REALITIES

Of course, there are challenges.

‘Net zero’ is a contested and often

inconsistently-applied term.

There is also a danger of sustainability

being watered down under cost pressures,

especially within tightly-constrained NHS

capital programmes.

Healthcare projects, in particular, face

specific barriers:

• Limited contractor experience in delivering

low-carbon construction in complex

clinical settings

• Alignment of clinical and IPC

requirements with low-carbon and

innovative materials and finishes

• Supply chain constraints around specialist

materials and systems

• Operational carbon measurement

that must span both regulated (e.g.

heating, cooling) and unregulated loads

(e.g. medical equipment, IT) which

can be significant

This is why third-party verification —

such as that offered by the UK Net Zero

Carbon Buildings Standard (UK NZCBS)

— is critical.

We look forward to the results of

the recently-launched UK NZCBS

Healthcare Pilot programme with

keen interest.

Without transparent, verifiable data,

‘net zero’ risks becoming more a marketing

tool than a meaningful outcome.

LESSONS TO BE LEARNED

There are clear takeaways for the wider

healthcare property industry:

• Adopt lifecycle carbon accounting from

the outset, not as an afterthought

• Push for timber and hybrid structures

where feasible—especially for non-acute

healthcare facilities

Ultimately, projects

like Velindre

demonstrate that

sustainability is not

a ‘nice to have’; it’s a

strategic imperative

for NHS trusts,

developers, and

contractors looking

to stay ahead of

policy, cost, and

reputational risk

• Align with national standards like the UK

Net Zero Carbon Buildings Standard to

ensure credibility

• Ensure sustainability is locked into

procurement, not left to the value

engineering stage

• Invest in soft landings and post-occupancy

monitoring to close the performance gap

Ultimately, projects like Velindre demonstrate

that sustainability is not a ‘nice to have’;

it’s a strategic imperative for NHS trusts,

developers, and contractors looking to stay

ahead of policy, cost, and reputational risk.

CONCLUSION

The Velindre Cancer Centre represents

more than a major new investment in

specialist care — it is a signal of where

the future of healthcare infrastructure

can, and must, go with the right

approach to delivery.

By combining ambitious design, new

materials, and third-party accountability,

it’s setting a new benchmark not just for

Wales, but for the UK.

As the sector grapples with how to

decarbonise one of the most-complex

parts of the built environment,

Velindre stands out as a beacon; one

that proves that even in the most

demanding of sectors, net zero is

possible — if we design like we mean

it and challenge traditional cost

assumptions that often act as a barrier to

low-carbon solutions. n


Environmental

A turning point

Ryan O’Neill, chief strategy officer at Equity Energies,

looks at why regulating energy brokers matters for

healthcare estates

The Government’s recent commitment

to regulate the Third-Party

Intermediary (TPI) retail energy

market is long overdue, and for healthcare

providers, and especially their estates

and property teams, this looks set to be a

real turning point.

For too long, a lack of regulation

has allowed rogue energy brokers to

operate unchecked.

The result of this has been poor advice

coupled with hidden fees and inflated costs.

It is a model that has undermined trust

by wasting time, money, and energy,

quite literally.

And, for NHS trusts and private sector

care providers alike, trying to run efficient,

resilient estates with limited resources,

that’s a problem we cannot afford to ignore.

A LEAP OF FAITH

Whatever size your healthcare estate is,

you will be used to constant pressure from

factors like ageing infrastructure, rising costs,

ambitious net zero targets, and a lack of both

time and budget to do it all.

In this environment, many organisations

turn to energy brokers for help managing

energy procurement.

When done well, this can be hugely

valuable. But, too often, broker services may

have been delivered without transparency,

leaving estates teams unclear on exactly

what they’re paying for, what value they’re

actually getting, or who the broker is

really working for.

And this lack of clarity pulls focus

and funding away from where it’s

needed most: estate improvement to

support patient care.

Thankfully, change is coming.

RAISING THE BAR

Crucially, this isn’t about adding

bureaucracy for the sake of it. It is about

levelling the playing field to make sure every

healthcare provider, public or private, and

regardless of the size of their estate, gets fair

access to expert support that actually helps

them reduce cost, cut carbon, and make

better decisions.

We’ve seen first-hand how valuable that

kind of partnership can be.

Trust grows when you remove the

complexity, show full transparency, and

focus on long-term, strategic relationships.

When there’s trust, it becomes easier

to help customers take confident steps

toward better energy strategy, from simple

efficiency gains through to decarbonisation

and longer-term net zero strategy.

… this isn’t about adding bureaucracy for the

sake of it. It is about levelling the playing field to

make sure every healthcare provider, public or

private, and regardless of the size of their estate,

gets fair access to expert support that actually

helps them reduce cost, cut carbon, and make

better decisions


Environmental

MOVING THE GOAL

Across the NHS and wider health and social

care sector, there’s a clear ambition (and firm

legislation) to reduce emissions and operate

more sustainably.

But one of the biggest barriers continues

to be cost. And that’s especially true for

estates teams managing tight capital

budgets and inherited infrastructure.

If a broker is charging hidden, or

excessive, fees, in some cases what equates

to several pence per kWh, those costs can

quickly balloon.

On a large multi-site estate, that could

mean tens of thousands in unnecessary

spend every year.

Regulation won’t solve this overnight, but

it will bring much-needed accountability

and help redirect those funds into

energy efficiency, renewables, and estate

upgrades instead.

THE WAY FORWARD

For regulation to work, it has to do more than

tick boxes. It should set minimum standards

for pricing transparency, broker remuneration,

and clear communication.

Just as importantly, the framework

should promote best practice, recognising

consultants who put the customer first, act

with integrity, and genuinely help estates

teams make more-confident decisions

around energy and sustainability.

But, while regulation is being developed,

Regulation won’t fix everything immediately,

but it’s a vital step in moving away from a ‘wild

west’ market and towards one built on trust

and transparency

all is not lost.

The first step is to talk to your current

energy broker, to find out as much as you

can about their working practices, and to

make sure you’re getting the best deal at

the right price.

Asking these questions is a good

starting point.

When it comes to which suppliers you

work with; a wider network means more

options and better, more-balanced advice.

And how do you get paid?

Ask for full transparency; it’s hidden

commission that quietly drains budget.

Remember, too, that procurement

isn’t one-size-fits-all. Your energy

strategy should reflect your sites, usage

patterns, and goals.

To get the best deal look beyond the

price per kWh. Look at contract terms, risk,

flexibility, and long-term value.

And always ask to speak to

other healthcare organisations

they’ve worked with.

Regulation won’t fix everything

immediately, but it’s a vital step in moving

away from a ‘wild west’ market and towards

one built on trust and transparency.

For NHS healthcare property and

estates teams especially, that matters,

because better advice means better use

of public money.

In the private health and social care space,

the outcome is the same; greater confidence

in energy decisions and more time and

budget to focus on the core mission:

creating safe and sustainable, future-ready

places for care.

When energy partnerships are based

on honesty, expertise, and shared goals,

everyone benefits, especially the people who

rely on healthcare services every day. n


Keep up to date with all the latest

healthcare property news.

healthcare-property.com

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Healthcare Property Issue 11 September-October 2025

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