If the slowest sales were brought forward by as little as six months, that would speed up the investment of a further �80 million - the equivalent of a new hospital

Edward Leigh MP

In the three years to March 2000, NHS trusts sold at least �380 million of surplus property, and they intend to sell a further �700 million by March 2003.

The length of time sales took ranged from five months to five years even when the NAO allowed for differences in size and property type and complexity of the sale.

Falling short

The NAO said trusts did usually sell property competitively and prices meeting or exceeding pre-sale valuations in 95% of sales.

But it said more needed to be done to identify property or land that was no longer required.

Ways of working with local planning authorities to obtain suitable planning permission as quickly as possible and get the most value out of the redevelopment should also be introduced, it said.

Guidance introduced in 1999, setting out standards for managing and rationalising the NHS estate.

However, just over a fifth of trusts did not expect to meet these standards until this year or later.

Sir John Bourn, head of the NAO, said: "There needs to be better management of NHS surplus estate, better working with planning authorities, and better handling of some sales to speed things up to release resources for NHS developments to benefit patients."

Missing out

Edward Leigh MP, chairman of the Commons Committee of Public Accounts said the delays were costing the NHS the equivalent of a new hospital.

He said those trusts which did not have proper systems in place were missing out on potential profits for the NHS.

"These kinds of failings by trusts are creating considerable delays in getting money into the health service.

"If the slowest sales were brought forward by as little as six months, that would speed up the investment of a further �80 million - the equivalent of a new hospital."

He added: "There is no doubt that the NHS could do much better.

"My committee will be keen to examine why it is that in the last month of the financial year, the amount sold is double that of any other month.

"I hope that there is persuasive evidence to show that sales are not being rushed. Otherwise there is a real danger that the NHS is selling its land and property too cheaply."