Day Nursery Market Insight 2025: North West of England

Image: Liverpool by Mylo Kaye for Unsplash

Market Overview 

The day nursery market remains buoyant in the North West of England, with a record number of North West day nursery transactions concluding in the first couple of months of 2025, which ranged from a new lease opportunity on a closed day nursery in Lancashire to a multi-million pound going concern in Cheshire. Due to the future landscape for operators becoming a little clearer in recent months, there has been an increase in new business inspections, instructions, and offers accepted compared with last year.  

So far this year, we have seen a significant uplift in enquiries from nursery operators considering selling their businesses, this is compared with more buyer-driven markets in 2023 and 2024. This reflects a growing trend of operators who want to find the ‘right’ time and conditions to exit the market, many of whom are seeking guidance on how to maximise the value of their businesses, navigate the complexities of the sales process, and ensure a smooth transition for both staff and their parents and children.  

Impacts of the Autumn Budget 2024 

Recently, we have also seen an increase in investment in the sector, which has been driven by extended early years entitlement, higher government-backed income, and a shift towards social impact and ethical investing. Medium-sized groups expanded their regional presence through selective acquisitions, while demand for high-quality, larger settings remained strong.  

We saw a surge of nursery operators who have escalated their exit plans in the lead-up to October last year, which was an unprecedentedly busy month for transaction completions, as many were keen to complete sales before the Autumn Budget in October.  

The Pod Nursery in Wilmslow is just one example where the April 2025 Capital Tax Gains increases factored into the owner’s decision to sell sooner rather than later. Operating from the grounds of a Total Fitness Club, the leasehold nursery was successfully operated by a husband-and-wife duo who, in a short space of time, built a highly successful business which flourished financially and reputationally year-on-year. It was a unique opportunity in that the business had been established for just three years and opened its doors during the pandemic, and, upon bringing it to the market, it received interest from both corporate and small group operators and achieved a strong sale price which considered the future scope and potential of the business.  

Buyer Appetite  
 
The current market is attracting a diverse range of buyers, each with specific interests and criteria. Corporate operators are primarily focused on acquiring larger, profitable nurseries with 60 or more places. They often target affluent areas, such as Cheshire and south Greater Manchester, where higher private fees can be charged, ensuring a steady and substantial revenue stream.  

Smaller groups and local operators, on the other hand, are seeking settings close to their existing nurseries. These buyers are typically more open to purchasing distressed businesses, recognising the potential for turnaround and growth, especially if the properties include high-value freeholds. The opportunity to add value and expand their footprint makes these distressed assets particularly appealing.  

Additionally, there is significant interest from first-time buyers with backgrounds in early years and education, who bring valuable industry knowledge and experience, as well as newcomers to the sector who are looking for fully-managed nurseries. These buyers prefer to oversee the operations rather than be involved in the day-to-day management, making it an attractive opportunity for those seeking a more hands-off approach. 

Overall, the market dynamics are shaped by the varied interests and strategies of these different buyer groups, each contributing to the competitive landscape of the day nursery sector in the North West of England. 

For more information on the day nursery market in the North West, or for a confidential chat about your business, contact Sofia Beck at sofia.beck@christie.com or +44 7736 616 687.