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Early Childhood Education & Care (ECEC) - Children’s Day Nurseries

Day nurseries are formal daycare settings, typically catering for children aged 12 weeks to 5 years, providing Early Childhood Education & Care, typically trading Monday to Friday, 7:30am to 6:30pm, 50 weeks of the year.

 

0 - 5 years
  Children’s Day Nurseries; Full day-care 50/52-week provision
  Kindergarten & Pre-Schools; Term Time Only
  Wrap around care; Breakfast, after school clubs, holiday & activity schemes


 
 
The day nurseries market is still highly fragmented, with around 80% of settings owned by independent operators, UK based children’s day nurseries continue to see more inbound investor interest which in turn is driving up values for the most desirable businesses.

The average size of a day nursery setting is currently around 44 places. However, larger, purpose-built facilities continue to be developed by both group operators and sole traders alike, with many new build settings having capacities of 100+ places. Compared to some new international day nursery developments, setting sizes of circa 80-100 places remain smaller than those slowly emerging in other parts of the world.

With the development of new ‘future proof, purpose designed’ settings increasing, pressure is being placed on some local smaller providers. This is pushing many owners to reinvest in their settings and evolve in line with growing demands and expectations of parents, service users and consumers.

The past year has seen a rise in nursery closures; particularly among the smaller, less commercial, least well-funded and less viable businesses. Although this has created a new supply of vacant D1 properties coming to the market, many of these assets have either needed significant capital investment in order to reopen or, due to configuration and capacity, have proven to be no longer viable for daycare purposes.

 Nick Brown
 Regional Director & Head of Brokerage – Childcare UK

 T: 0161 833 6904  
 E: Nick.Brown@christie.com