With more families looking for reliable childcare across the UK, landlords with suitable properties have an opportunity to meet that need. Selling a property for nursery use isn’t quite like a standard commercial sale, it involves a few extra steps and things to think about.
This guide walks you through the essentials, covering legal, planning, and practical points to help make your sale faster and more appealing to nursery buyers.
Understanding Who’s Looking to Buy
Buyers range from large nursery chains to professionals branching out from education or healthcare. Some are after ready-to-go sites; others want buildings they can convert.
Larger operators tend to look for places that can accommodate 60 to 100 children, while individuals or smaller groups might prefer more compact spaces. Leaseholds are fairly common too, as many buyers want the flexibility of renting rather than owning outright.
What most of them have in common is a preference for properties that already have the right planning use, outdoor play space, and easy access for parents and staff.
Planning Permission and Use Class Rules
Most nurseries fall under Class E(f) in the planning system. If your property already fits this class, it might not need a full change-of-use application. But if it’s currently listed under something else like F1 use class, you’ll likely need to apply.
Planning applications can take anywhere from two to three months, depending on the local authority and any issues raised. Getting in touch with planning officers early on can help flag concerns before they cause delays.
Councils typically focus on traffic, noise, parking, and how well the proposal fits the local plan. They won’t consider things like whether the area already has enough nurseries or personal views on childcare. You might also need environmental checks, especially for buildings next to homes, including reports on matters like a noise impact assessment.
Since nurseries are considered important community facilities, that can work in your favour during the planning process if your proposal ticks the right boxes.
Legal Checks Worth Reviewing Early
Ownership and Restrictions
Freehold sales give buyers more control, but that doesn’t mean there aren’t limits. Old covenants might still restrict certain uses or changes, even if they’re out of date. Leasehold properties come with their own set of rules, especially around making changes or applying for planning.
Buyers will want to review these details carefully, so it helps to have that information ready upfront.
Access and Parking
Nurseries often see traffic spikes at drop-off and pick-up times. Safe access and enough parking for staff, parents, and deliveries is a must. Shared driveways or private roads might cause complications if increased use wasn’t anticipated. And don’t forget – you’ll need proper access for emergency vehicles too.
Compliance and Building Condition
Checks Buyers Will Expect
Buyers take nursery standards seriously. They’ll want up-to-date fire risk assessments, asbestos surveys for older properties, and reassurance that the building meets safety and childcare regulations.
Building Suitability
A general survey will check things like structure, plumbing, and electrics. If your property is older or hasn’t been updated in a while, buyers may see that as a risk or cost they’ll need to factor in.
Tax and VAT Considerations
VAT Rules
Most nurseries can’t reclaim VAT, so selling a property with VAT included can be off-putting. Choosing not to tax the property could make it more appealing to buyers.
For leasehold premises, it depends on whether you’ve chosen to apply VAT. Offering a VAT-free rent can also give your property an edge.
Transfer of Going Concern (TOGC)
If you’re selling a property with a nursery tenant already in place, it may qualify as a TOGC, which means VAT wouldn’t apply. But the rules here are strict so get advice before assuming your sale qualifies.
Charitable Buyers
Some charities can get VAT relief, but not every nursery operator counts. It depends on how the property will be used and whether the buyer qualifies.
What Buyers Look for in Due Diligence
Ofsted and Operational Checks
Properties with past or current nursery use are usually more attractive. Buyers also check the layout to make sure it suits nursery operations so think about kitchen space, bathrooms, and sleeping areas.
Security and Safeguarding
Security is a major consideration. Buyers often expect gated access, secure perimeters, and layouts that allow for proper supervision. Features like keycode entry or intercom systems are a bonus.
Outdoor and Environmental Factors
Outdoor play areas are essential. Buyers will look at the size, layout, and safety of these spaces. If the land was once used for industry, they may also want soil or ground quality checks. For city properties or those near busy roads, acoustic studies might be requested too.
Neighbour and Community Relations
Feedback from neighbours and any history of planning objections could influence a buyer’s confidence. If the local community is supportive, that can be a real plus.
Getting the Property Ready to Sell
Prepare Your Paperwork
Get your documents in order early, including any planning permissions, fire safety certificates, asbestos reports, and general maintenance records. If the building’s vacant, include utility details. If it’s currently let with a tenant in situ, have lease information and rent data ready.
A good set of documents can cut down delays and build trust with buyers.
Make Smart Upgrades
Certain improvements can make a big difference, especially if they show you understand nursery needs. Examples include:
- Fitting secure fencing and access systems
- Upgrading outdoor areas with safety surfacing or shaded zones
- Dividing internal space for different age groups
- Improving heating or electrics to handle nursery use
These changes don’t just add value, they show buyers the property is ready to be used as a day nursery.
Work with People Who Know the Market
Specialist advisers and agents who are familiar with childcare property sales, planning consultants, or legal teams, can make the whole process easier. They’ll spot things you might miss and help avoid costly setbacks.
Selling a property for use as a nursery comes with extra steps, but it also opens doors to a growing market. By getting organised early and thinking like a buyer, you can make your property more attractive and avoid unnecessary hold-ups.
Here’s a quick recap of what helps:
- Know what buyers need and check the planning rules
- Review ownership, access, and any legal restrictions
- Get your documents and safety checks ready
- Make targeted improvements that suit nursery use
- Work with advisers who understand the nursery market
A well-prepared property doesn’t just sell—it gives buyers confidence to move forward quickly.