Average yields in primary care investment are currently the lowest among the major healthcare asset categories sitting at just 3.85% in the first half of 2021, according to  real estate advisers Savils.

Savils adds that the margin between primary care yields and gilt and swap rates is also shrinking with a current difference of less than 3%, which is expected to decrease further as swap rates and gilts continue to rise.

Craig Woollam, head of Savills healthcare, said: “With quasi-government backed tenancies and long leases, primary care has proved to be an appealing asset for the increasing number of investors looking for stable, secure returns. In 2020 we saw investment into UK primary care property rise by 173% year on year, and, whilst the first half of 2021 has seen less investment activity, we attribute this more to a lack of available stock than to a lack of appetite.”