Day Nursery Insight: Midlands

SUPPLY OF SETTINGS

The current supply of day nurseries coming to market in the Midlands begins to show an interesting pattern emerging. We have recently seen a steady flow of smaller settings, typically with fewer than 40 places come to the market which have been popular with buyers, then, at the opposite end of the scale, several high profile multi-site groups have been offered for sale through us, All have created their own interest but it has magnified a lack of mid-sized individual nurseries in the 60 to 80-place bracket becoming available for sale.

We have seen no let-up in enquiries from an increasing buyer pool looking for high-quality settings of all sizes. What we have seen in certain areas is that, where there is a lack of opportunities for sale, when they do arise, the competitive tension for those settings is very high.

The region has also seen a number of ‘new’ very active buyers who have been very keen to acquire, including large corporate providers and medium-sized groups, all of whom are entering the Midlands market for the first time. Within a short space of time, we have already agreed deals and moved to the legal deal stage on five settings between them. This is great news for people potentially looking to sell and highlights a growing level of interest from well-funded buyers wanting to expand into the region.

LOCATION

Geographically, certain areas within the Midlands continue to stand out, such as Worcestershire, Warwickshire, and Birmingham, which are proving especially popular among buyers, largely due to their favourable funding rates. These locations are attracting consistent demand, reinforcing their position as key hotspots within the regional market.

MARKET OUTLOOK

Looking ahead, policy and regulatory changes are at the forefront of many operators' minds. The forthcoming Ofsted framework is a particular area of focus, with nurseries preparing for the return of inspections under the updated criteria. As inspection cycles resume, this is expected to play an important role in shaping both operational priorities and market sentiment.

Overall, the Midlands nursery market remains active, with buyer demand aligning closely with the types of settings available. While the lack of mid-sized stock continues to shape transaction dynamics, strong regional fundamentals and sustained interest from a mix of buyer groups point to ongoing opportunities across the sector.

To discuss the Midlands day nursery market in more detail, or for a confidential discussion about your business options, get in touch: jassi.sunner@christie.com or 07791 979 343