Building management case study: Corporate Landlord Model (Hywel Dda University Health Board)

Introduction

The Corporate Landlord Model is a strategic approach to managing property and estate assets through a single, centrally governed framework. By separating asset ownership and management from individual service areas, the model enables organisations to optimise the use of space, improve efficiency, strengthen governance, and ensure estate decisions align with corporate priorities. Within Hywel Dda UHB and other NHS Wales health boards/trusts, the model will support better utilisation of NHS public assets, reduce duplication, and provide greater transparency over costs, performance, and investment decisions. Ultimately, it creates a more flexible, sustainable, and financially responsible estate that is capable of supporting future service delivery needs.

The challenge 

Hywel Dda identified the following challenges that prompted us to progress with a Corporate Landlord Model:

• Asset plans not aligned to strategic business planning
• Property ‘owned’ by individual Services/Directorates
• Service Managers independently take on / dispose of business space
• Capital investment not prioritised across whole estate
• Pockets of property maintenance budget across the organisation / cross-charging ineffective or inconsistent
• Total backlog maintenance position unknown
• Statutory obligations/legislative testing programmes fragmented
• Inconsistency in responsibility for property running costs
• Total cost of occupation unknown
• Space and accommodation standards inconsistent (or non-existent)
• Space utilisation unknown
• Inconsistency in delivery of facilities management services
• Uncoordinated procurement of property services - not delivering VFM

The aim is to ensure the property estate is managed strategically, corporately and consistently to:

• Support wider organisational objectives, priorities and strategic decision making
• Better plan resources
• Set clear and consistent policies and procedures in a strategic setting
• Enable a comprehensive understanding of the performance of the estate portfolio and its use
• Ensure a sustainable asset base, and deliver value for money

And, that property resources and expertise are consolidated to:

• Eliminate duplication and improve efficiency, ensure skills are best used where and when needed
• Ensure priority/targeted investment and consistent capital delivery
• Manage property risks, and ensure that the property portfolio is safe and fit for purpose

The approach

Structure

Aligning structures to a more typical CLL model, with key oversight being through CLL Board, and consideration given to operating CLL as an Organisation Delivery Network (ODN)

Functions

Transferring several ‘functions’ between property teams and Departments, to create a new CLL team to lead on asset decisions across the estate, and be the ‘controlling mind’ 

Delivery models

Introduce two ‘delivery models’ for the estate, to ensure consistency, and clarity regarding property responsibilities. 

Assets

CLL to have oversight of all assets owned or occupied by the UHB, with each asset being assigned to one of the two delivery models referenced above. 

Processes

Introduce revised processes to allow for improved oversight, including Capital and Planned Maintenance, Service Requests, Asset and Estate Management and Asset Challenge.

Policies

Develop several policy documents which will outline how CLL will function, set expectations and provide clarity regarding roles and responsibilities. 

Data, systems and technology

Streamline the use of systems used across property, to ensure a single version of the truth to baseline asset performance and inform property decisions. 

Budgets

Centralise property related budgets to give full coverage of asset-specific property spend for the first time, whilst introducing revised budget structure to ensure cost clarity.

Governance

Adjust current governance structure to allow for clear lines of reporting, timely involvement of Departments in property decisions, and alignment to overall UHB structure. 

Contributes towards 

Well-being of Future Generations (Wales) Act 2015

A Corporate Landlord Model directly supports the five ways of working by:

• Taking a long-term approach to estate planning.
• Improving collaboration with partner organisations.
• Preventing expenditure on unsuitable or surplus assets.
• Integrating estate decisions with service transformation.
• Supporting sustainable resource use and decarbonisation.

Social Services and Well-being (Wales) Act 2014

Supports the creation of sustainable, community-focused services through:

• Better utilisation of community assets.
• Co-location opportunities.
• More effective use of public sector buildings.
• Supporting care closer to home.

Environment (Wales) Act 2016

Supports statutory carbon reduction and sustainability duties through:

• Estate rationalisation.
• Energy reduction programmes.
• Strategic investment in low-carbon infrastructure.
• More efficient property management and utilisation.

The OBC specifically links Corporate Landlord principles to decarbonisation and environmentally sustainable estate decisions. 

Active Travel (Wales) Act 2013

Supports estate planning decisions that:

• Encourage active travel.
• Improve accessibility of services.
• Promote sustainable transport infrastructure.

Planning (Wales) Act 2015

Supports:

• Strategic land and property decisions.
• Estate optimisation.
• Alignment of health estate planning with local and regional planning frameworks.

NHS (Wales) Act 2006

Supports Health Board statutory duties relating to:

• Efficient use of public resources.
• Delivery of healthcare services.
• Stewardship of public assets.

Health and Social Care (Quality and Engagement) (Wales) Act 2020

Supports the Duty of Quality by ensuring:

• Safe and compliant healthcare environments.
• Better prioritisation of estate investment.
• Improved patient and staff environments.

The OBC repeatedly identifies reduced estate risk, enhanced compliance oversight and improved patient safety outcomes as fundamental benefits.

Health and Safety at Work etc. Act 1974

• Clearer accountability.
• Centralised compliance monitoring.
• Consistent management of estate risks.

Management of Health and Safety at Work Regulations 1999

Supports:

• Risk assessment.
• Monitoring arrangements.
• Compliance assurance processes/Centralised safety management.
• Remedial action tracking.

Impacts and outcomes

The UHB achieved the intended goal/objective of a comprehensive Outline Business Case with Implementation Plan through the extensive work undertaken in partnership with industry expert, Peopletoo. The OBC was presented to the UHB’s senior Directors, with approval given in principle to progress with the CLL model. Furthermore, the OBC/Implementation Plan was presented to and shared with all HBs in Wales, and Welsh Government representatives.  

The OBC evidences clearly how the Corporate Landlord Model enables a strategic, governance-led solution to: 

• escalating backlog and financial pressures 
• increasing patient safety risks 
• fragmented property management arrangements 
• lack of control over property or estate budgets

The Corporate Landlord Model is a positive and necessary step change to a centralised, strategic and risk-managed approach, enabling the UHB to protect patients, improve efficiency/reduce waste and deliver its long-term service strategy underpinned by a healthy, fit for purpose estate.

Lessons learnt and future planning 

Lessons learnt

• Early executive sponsorship and visible leadership support were critical in securing organisational buy-in for a significant change programme. 
• Establishing a clear baseline of estate data highlighted inconsistencies in asset information and reinforced the importance of a single source of truth. 
• Stakeholder engagement across operational, clinical, corporate and property functions was essential to develop a model that reflected organisational needs and priorities. 
• Existing decentralised ownership arrangements created varying levels of understanding and governance, requiring extensive communication and change management activity. 
• Developing the Outline Business Case and supporting implementation plan provided a structured evidence base to demonstrate benefits, risks and investment requirements before implementation.
• A phased implementation approach was identified as the most effective method for managing organisational change and minimising disruption to service delivery.
• Clear policies, defined roles and revised governance processes are fundamental to ensuring consistent estate decision-making across the organisation. 

Future planning

• Progress implementation of Phase 2 of the Corporate Landlord Model following organisational approval of the Outline Business Case and Implementation Plan.
• Establish the Corporate Landlord governance arrangements, including formal reporting and decision-making mechanisms. 
• Continue the development and implementation of supporting policies, procedures and estate standards.
• Centralise estate-related budgets and improve visibility of asset costs to inform strategic decision-making. 
• Strengthen estate performance reporting through improved systems, data quality and utilisation monitoring.
• Support NHS Wales collaboration by sharing learning, tools and implementation experience with other Health Boards and Welsh Government partners.
• Use the Corporate Landlord Model to support future estate rationalisation, backlog reduction, decarbonisation objectives and delivery of long-term service transformation programmes.