Specialist business property adviser Christie & Co has seen a 62.5% increase in day nursery deals in the first half of 2025, driven by policy changes.

Christie & Co’s Childcare & Education: Market Review 2025 identifies the anticipated rise in Business Asset Disposal Relief (BADR) from 14% to 18% in April 2026, announced in last year’s Autumn Budget, as a key market driver, prompting many owners to consider their exit strategies.

The report found a diverse and active buyer pool, including individual investors, institutional funds, and charitable organisations, is driving acquisition activity, often with a focus on aligning investments with ESG goals.

The number of day nurseries up for sale increased by 13.3%, with an increase in demand for both leasehold (53.2% of deals in the first six months of 2025) and freehold (46.8%) settings. There was a rise in acquisitions from independents and first-time buyers, making up 28.8% of sales in the first half of 2025, compared to 15.4% in 2024.

The average capacity of day nurseries sold by Christie & Co so far in 2025 has ranged from an average of 49.8 places for independents to an average of 88.7 for corporate groups.

Christie & Co said the common theme that has run through all day nursery sales in 2025 so far has been the competitive tension and heightened level of interest experienced across the board from a range of buyers.

According to Christie Finance, the lending appetite for the UK childcare and education sector remains strong, underpinned by favourable economic conditions, stable interest rates, and supportive government policies.

Nick Brown, director and head of brokerage – childcare and education at Christie & Co, said: “As announced in Rachel Reeves’ 2024 Autumn Budget, increases in Business Asset Disposal Relief from 10% to 14% effective 6 April 2025, prompting more day nursery business owners to consider their exit strategies, has undoubtably contributed to 2025’s buoyant market conditions.”

He added: “Heightened activity in the sector is expected throughout the remainder of this year, and we anticipate an incredibly busy Q1 2026 as a result of the further BADR increases to 18 per cent effective 6 April 2026. Despite operational pressures, such as rising National Insurance contributions and wage increases, many businesses are adapting successfully, though fee sensitivity remains a challenge.”