What’s been happening in the children’s social care market in 2025?

At the start of the year, we published our predictions, summarising expectations of activity in the UK children’s social care market for the year ahead. With the first six months of 2025 behind us, several of our original predictions have been wholly evident, not least there being no let-up in demand from buyers seeking high-quality, established businesses.

Properties with the benefit of permitted C2 or C2a have continued to command premiums over those sold on a vacant possession basis with C3 use, a trend we expect to continue, with demand from local authority commissioning teams showing no sign of abating. Providers pursuing organic growth plans by adding and developing new properties and services to meet demand have very much been centred on the creation of new homes and services enabling children to remain within their communities.

In March, the Health and Social Care (Wales) Act received Royal Assent. The Act makes Wales the first UK nation to ban profit in the provision of fostering, children’s homes or secure accommodation placements for looked-after children. Over the past 12 to 18 months, we have increasingly been invited to work with children’s services providers across Wales as they have sought to navigate the potential restructuring changes against the backdrop of the ‘Eliminate’ policy. The transition period could well resemble an obstacle course for many providers, as the supply landscape navigates a seismic shift. At the time of writing (July 2025), the Children’s Wellbeing and Schools Bill is at Committee stage in the House of Lords.

While market activity in H1 2025 remained relatively subdued, there has been a noticeable increase in children’s social care business owners preparing their businesses for sale. We have seen a marked increase in owners seeking our advice, guidance and support as they strive to get their legal, property, financial, tax matters and valuations in order, to enable them to be in the best possible position when formally commencing confidential sale processes. Following political change, and despite potential headwinds associated with legislative and/or regulatory change, we have seen no slowdown in buyers’ appetites to acquire high-quality established children’s services businesses in England. Conversely, there has been a notable increase in buyers specifically exploring this, and indeed other children’s education service markets, drawn to these environments based on genuine passion, desire and ambition in securing the opportunity to make a positive change to the lives, outcomes and prospects of the children and young people their respective businesses serve.

A good example of such activity can be seen through the sale of Smallwood Manor in Uttoxeter back in February 2025. This Grade ll listed Elizabethan-style country residence, which was partly refurbished in 2021 to accommodate a children’s hospital and mental health centre, was sold to Resicare Alliance. The group’s CEO, Donna Varley-Turner, said that this acquisition will “enable us to continue our expansion into the SEN sector and build on our successful children’s home business.”

To find out more about the children’s social care market, read our ‘Childcare & Education Market Review 2025’ report here.