We have had buy-to-let hotels, buy-to-let prisons, now you may be able to own part of a hospital in the future. An announcement by the Department of Health has said that it will keep an eye on how other government departments react to Real Estate Investment Trusts (REITS) and then make a decision as to whether or not to allow the public to buy shares in hospitals run by the NHS.

At the beginning of the year, companies in the UK who make 75% of their income from property and give out 90% of profits to shareholders as dividends could apply for REIT status. This would make yields from renting and capital gains on property exempt from corporation tax, and these buildings do not just have to be residential - they could be offices or warehouses for example. The government hopes to raise income from fees paid by companies to convert to REIT, and also increase the liquidity of the commercial property sector. The public will then be able to invest in property more easily and with less initial capital.

The idea of REITs for hospitals is already used in the USA where investment by individuals funds new buildings - the same idea could be applied over here. Although the Department of Health has not yet given the idea a green light, they suggested that they are open to new ways of developing much needed hospitals. At the moment it would be possible for REIT companies to invest in the buying and refurbishment of old hospitals, or building new ones, and let them out to the NHS - but there is not legislation allowing patients to be regarded as long-term social tenants whose rent is paid by the government.

At the moment there is already a company using the idea of investing in the health sector with REITs, but for primary care facilities or medical centres which are then let out to GP practices - However, Primary Health Properties (PHP) has now bought a £12 million property in the East Midlands to be used as a small community hospital. This could open the doors for other companies to follow suit with even larger projects, and hopefully there will be a benefit to the health care market in this country.