According to the latest data from Christie & Co, on average, nurseries sold for 7.7 per cent higher in 2024 than the previous year (see pricing chart). However, the broker acknowledges that the quality of settings sold last year was ‘notably stronger’.
A breakdown of the figures within its Business Outlook report shows the average price of medium-sized nursery group sales increased by over 10 per cent, while small group and single setting sales rose by an average of 1 per cent.
Single settings remain in ‘high demand’ and ‘exceptional’ prices have continued to be achieved for high-quality sites in desirable locations, however.
Buyer activity
According to Christie & Co's latest report, there was an increase in ‘appetite’ from medium-sized groups last year.
In 2024, medium-sized groups accounted for 19 per cent of all nursery transactions, up from 5 per cent in 2023. In contrast, fewer smaller groups, single settings and first-time buyers acquired settings, making up 15 per cent of transactions in 2024 compared to 33 per cent the year prior (see chart, below).
The broker refers to 2024 as an ‘active year’ for nursery transactions across the UK, with Christie & Co brokering 59 per cent of deals across the country. It also achieved a 36 per cent increase in the number of offers received.
Its report finds:
- In 2024, there were slightly more leasehold than freehold sales.
- Where previously buyers have focused on acquiring settings in London and the South-East, activity last year stretched across all areas of the UK.
- Corporate and large groups acquired smaller settings, with an average of 86 places, compared with an average of 92 places in 2023.
- Smaller groups acquired larger settings, with an average of 62 places.
- There was little change in the type of setting first-time buyers went for.
- From an investment perspective, interest in the nursery market in 2024 was fuelled by the extended early years entitlement and increased Government-backed income, as well as a shift in investors focusing on social impact investment opportunities and ethical investing.
Looking at sales last year, the report highlights the purchase of Children 1st's nurseries by Storal last October. Overseas, it mentions the move by USA-based KinderCare to list shares on the New York Stock Exchange.
Other ‘major’ transactions in 2024 included:
- The sale of Poppins Nurseries, a group of four sites in West London, to Dukes Education in January. It was the highest value group OpCo (operating company) transaction to have completed in the UK.
- The sale of Katey's Nursery and Pre-School, a group of five settings in South-West London, to Chalk Nursery Group in June.
- The sale of Hollies Nursery Group, with five settings in Nottingham, to Kids Planet in August.
The report also reveals that in recent years there has been a ‘stark’ increase in ‘deal volatility’, with buyers' due diligence processes becoming more detailed and thorough, leading to a rise in the length of time that transactions take.
Courteney Donaldson, managing director of childcare and education at the broker, explains, ‘The ability of vendors to produce comprehensive information to satisfy buyers' due diligence enquiries, along with the vendors' advisors being suitably experienced in overcoming potential challenges, is increasingly key.’
She adds, ‘The voracious appetite from buyers across the UK's specialist childcare and SEND education markets continued to be wanting. A dearth of opportunities which has, for some time, prevailed, continued to heighten the prices that buyers are willing to pay for high-quality businesses, especially those with strong management teams in situ, enabling platform purchases for buyers to facilitate consolidation, expansion and growth.’
Feeling among providers
As part of its annual sentiment survey, Christie & Co surveyed a cross-section of childcare and education providers across the country. Responses were anonymised.
When asked how they felt about 2025, 31 per cent said they felt negative, while 25 per cent were ‘positive’. Forty per cent were neutral, which the broker says ‘illustrates the uncertainty in the sector’.
Asked about their sale and acquisition plans, 62 per cent stated that they are looking to buy and/or sell this year.
Market predictions
Looking forward to the nursery market this year, Christie & Co says it expects there to be further consolidation driven by large and medium-sized groups looking for acquisition opportunities.
With the 2025-26 Early Years Pupil Premium funding rates not factoring in employer national insurance increases, it expects some settings will face greater financial sustainability challenges.
It also predicts there will be high demand for ‘quality’ leasehold and freehold opportunities across the UK, continued interest in expansion and growth opportunities from entrants, established and new, and that buyers will increasingly scrutinise parental demographics when considering acquisitions and undertaking due diligence.
Nick Brown, director and head of brokerage for childcare and education at Christie & Co, comments, ‘2024 was a super year in terms of positive activity on deals completed, from large groups to single assets and continued demand from a range of buyers right across the country.
‘While announcements in the Autumn Budget undoubtedly created challenges, the positive impact of the new funding announcement, the ease of inflation, the cost of borrowing and the resilience of owners fuelled demand and competitive tension for opportunities – from existing operators looking to consolidate, to new entrants and investors – all of which continues to drive the market forward. 2025 has already begun at a fast pace and we expect that appetite will continue to grow for high-quality settings.’
