The price of day nurseries increased by 7.7% last year according to specialist business property adviser Christie & Co, which has launched its Business Outlook 2025 report.

The report finds that this increase was driven by a rise in the average price of medium group portfolio sales, which increased by more than 10%, while small group, single settings sales only increased by around 1%. However, the report said “single asset settings remain in high demand and exceptional prices have continued to be achieved for those of high-quality in desirable locations.”

A survey of childcare and education providers found 62% are looking to buy and/or sell this year. When asked about their sentiment in 2025, 29% said they feel positive and 31% negative, with the majority (40%) remaining neutral.

Nick Brown, director and head of brokerage – childcare and education at Christie & Co, said: “2024 was a super year in terms of positive activity on deals completed, from large groups to single assets and continued demand from a range of buyers right across the country. While announcements in the autumn Budget undoubtedly created challenges, the positive impact of the new funding announcement, the ease of inflation, the cost of borrowing, and the resilience of owners fuelled demand and competitive tension for opportunities – from existing operators looking to consolidate, new entrants and investors, all of which continues to drive the market forward. 2025 has already begun at a fast pace and we expect that appetite will continue to grow for high-quality settings.”

Christie & Co brokered 59% of deals across the country in 2024, according to data on daynurseries.co.uk, and achieved a 36% increase in the number of offers received on day nurseries for sale.

The report also found:

• An increase in appetite from medium groups, which acquired 19% of all nursery transactions in 2024, up from 5% in 2023. However 2024 saw a decrease in appetite from smaller groups, single settings and first-time buyers, who acquired 15% of assets in 2024 compared with 33% in 2023.
• An increase in leasehold sales, with 61% of day nurseries sold in 2024 being leasehold, up from 57% in 2023.
• Activity in 2024 stretched across all areas of the UK rather than clustering in London and the South East
• Corporate and large groups tended to buy smaller settings than in 2023, with the average number of places down from 92 to 86. Smaller groups acquired larger settings, with the average number of places up from 62 to 67. There was little change in the settings acquired by independents and first-time buyers.
• Interest in the UK day nursery market in 2024 was fuelled not only by the extended early years entitlement and increased government-backed income in the sector, but also by a shift in investors focusing on social impact investment opportunities, ethical investing, and ESG considerations.
• The past 12 months saw a notable increase in medium-sized groups making selective acquisitions to expand their regional footprints. There was also no shortage in demand from investors and buyers seeking platform acquisitions and opportunities to consolidate via the acquisition of high-quality, larger capacity settings within the UK’s children’s day nursery sector.

In the report, Christie predicts:

• Buyers will increasingly scrutinise parental demographics when considering acquisitions and undertaking due diligence
• Continued interest in platform acquisitions, expansion and growth opportunities from entrants, established and new
• With the 2025-26 Early Years Pupil Premium funding rates not factoring in NIC increases, some settings will face greater financial sustainability challenges
• High demand for quality leasehold and freehold opportunities across the UK
• Further consolidation from large and medium-sized groups seeking acquisition opportunities