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Pharmacy underpayments for GP landlords

23 March 2013

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GP landlords could be receiving less than a third of what a pharmacy is worth because of incorrect valuations, experts have warned.

Some pharmacies are valued like retail units instead of taking into account the “specialist pharmacy use”, a healthcare-surveying organisation found

GP Surveyors noted that many pharmacies have teams dedicated to keeping costs and premises rentals low.

“Many surgeries may have accepted what seemed like a large premium from their pharmacy in return for a lower ‘retail’ rent when the pharmacy first began leasing space from them,” said James Williams, principal surveyor at GP Surveyors.

“However, as time moves on, the impact of that premium disappears and the surgery can be left many years down the line with a pharmacy paying what is comparatively a very low rent,” he said.