Competitive market drives price of day nurseries up for second year in a row, says Christie & Co report
Specialist business property adviser, Christie & Co, has launched its Business Outlook 2026 report, which reflects on the themes, activity and challenges of 2025 and forecasts what 2026 might bring across the sectors in which Christie & Co operates, including in the children’s day nursery sector.
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The children’s day nursery market was buoyant in 2025, reports Christie & Co, with heightened activity from a full range of buyers across the country, especially in locations that buyers may not have previously considered.
Large group operators (those with 21 settings and over) dominated the buyer space, with 62 per cent of Christie & Co deals being completed to that buyer group. Meanwhile, 17 per cent of deals completed to medium-sized groups (three to 20 settings) and 21 per cent to small groups, single settings and first-time buyers.
73 per cent of Christie & Co’s deals in the sector were leasehold (versus 61 per cent in 2024), and 27 per cent were freehold (versus 39 per cent in 2024). The company also found that buyers typically acquired smaller settings last year, with the average setting bought by small groups and independent buyers being 49 places, the average bought by medium groups (three to 20 settings) being 58 places, and the average bought by large groups of over 21 settings being 84 places.
While private equity investment remains confined to a small proportion of overall UK nursery business ownership structures, Christie & Co acknowledges the growth of investment interest in the sector, which, for some providers, facilitates speedier access to capital, enabling the investment in quality improvements, staff development, and digital infrastructure.
PRICING
The market has been very active, fuelled by long-established businesses with solid earnings being put up for sale. Interest came from a range of buyers, from corporates to independents, with competitive bidding driving prices up, which led to a 3.8 per cent increase in the average price of a day nursery sold in 2025.
MARKET SENTIMENT
As part of its annual sentiment survey, the company surveyed childcare and education professionals across the country to gather their views on the year ahead.
When asked about their sentiment in 2025, 40 per cent said they feel positive, and 29 per cent feel negative, while 31 per cent remain neutral, which illustrates the uncertainty in the sector. When asked about their sale and acquisition plans, 75 per cent stated that they are looking to buy and/or sell this year.
MARKET PREDICTIONS
In the day nursery market in 2026, Christie & Co expects:
- Continued demand for both freehold and leasehold settings, from first-time buyers through to the larger corporate operators, across the whole of the UK
- Legislative changes and shifts in policy direction to fuel market activity in the year ahead
- The sale of some of the UK’s larger corporate groups to transact and change ownership in the next 12 months
Nick Brown, Director & Head of Brokerage – Childcare & Education at Christie & Co, comments, “Off the back of a busy 2025, we can already see strong momentum from buyers looking to expand, sellers looking to complete their sales process before the end of Q1, and those looking to begin their exit strategy. Either way, we anticipate a bustling market in 2026.”
To read the full ‘Business Outlook 2026’ report, visit: https://www.christie.com/news-resources/business-outlook-2026/childcare/childrens-day-nurseries/
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