Nursery World - Growth in nursery sector more than halved in a year

Growth in the UK nursery market slowed to 8 per cent last year - less than half the 2004 figure - with fewer new nurseries and smaller fee rises as operators tried to raise flagging occupancy levels, according to a new report. The Laing and Buisson nursery market report said it was now worth 3.4 billion, slowing from 17 per cent growth in 2004 and 12 per cent in 2003, 'as the market started to adjust to several years of capacity outpacing demand'.

The Laing and Buisson nursery market report said it was now worth 3.4 billion, slowing from 17 per cent growth in 2004 and 12 per cent in 2003, 'as the market started to adjust to several years of capacity outpacing demand'.

Ominously for private sector providers, it said that while children's centres and extended schools were a major driving force for nursery market expansion, they remained 'a competitive threat to the private/voluntary sector'.

The report said that market growth was also held back 'by the lowest annual nursery fee inflation on record' - just 1.1 per cent and, in reality, a fall when adjusted to inflation in the rest of the economy.

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