South London is seeing strong population growth, with boroughs such as Croydon, Lambeth, Southwark, and Lewisham attracting young families and professionals.
Combined with childcare shortages, this makes the area a promising market for day nursery operators as landlords benefit from long-term tenancy security and premium lease rates.
This article explains why South London is appealing to nursery operators, what landlords should consider, and how professional support can maximise returns.
Growing Demand for Childcare
Population growth in South London is outpacing childcare provision. Many councils report insufficient places for full-time working parents, while costs remain high due to limited supply. Expansion of free childcare entitlements for under-fives from September 2025 will further increase demand. Operators face funding pressures, creating a market where long-term, compliant, and fit-for-purpose properties are highly valued.
Why South London Appeals to Operators
High Demand and Family-Friendly Communities
South London’s family-oriented neighbourhoods, strong schools, and transport links continue to sustain the need for day nurseries in the area. Both established nursery groups and new entrants are actively expanding in areas like Croydon, Southwark, and Lambeth.
Regeneration Zones
Areas with new residential property developments attract young families who need local childcare. Nurseries in these zones are in high demand due to limited established provision, offering landlords concentrated operator interest.
Adaptable Property Stock
Changes to the Planning Use Classes Order (Class E) allow retail units, offices, and other commercial spaces to operate as nurseries without new planning permission. South London’s surplus of vacant commercial stock now presents strong nursery opportunities. Ground-floor units and former office spaces are particularly suitable.
Property Requirements for Nursery Operators
Safe Access and Outdoor Space
Properties must have step-free access, ramps, and handrails to comply with Building Regulations Part M. Outdoor play areas are essential, with guidance recommending a minimum of 5 m² per child and covered space for year-round use. Generous, secure gardens or courtyards offer nursery providers operational flexibility and have a lot of market appeal.
Flexible Interiors
Open-plan layouts with moveable partitions allow nurseries to adapt to changing numbers and age groups. Rigid layouts reduce flexibility and long-term property value.
Sanitation, Hygiene, and Fire Safety
Nurseries require accessible toilets with grab rails, hand-washing stations, and safe water temperatures (max 43°C). Kitchens must meet food hygiene standards. Properties must comply with Fire Safety Regulations, including alarms, illuminated exits, emergency lighting, and unobstructed escape routes. Existing compliance certifications make properties more attractive to operators.
Parking and Drop-Off Facilities
Adequate parking for staff and specialist transport (taxis, minibuses) is vital. Insufficient parking can deter operators or cause local complaints.
Planning, Building Regulations, and Compliance
Nurseries operate under Class E, offering flexibility for future educational uses. Pre-2020 consents may include restrictions, so operators should confirm lawful use. Material refurbishments must meet Building Regulations:
- Part M: This regulation relates to accessible entry, circulation, and sanitary facilities
- Part B: This regulation relates to fire detection, exits, lighting, and (for new care homes post-2025) sprinklers
- Part F: This regulation focuses on ventilation and thermal comfort
Demonstrating current certifications and proactive maintenance strengthens your negotiating position with tenants.
Our team have decades of experience and expertise in the provision and acquisition of day nursery property across London, so can discuss this in more detail to ensure compliance.
Benefits of Long-Term Tenants
Nurseries typically commit to leases of 5–10+ years due to high fit-out costs. This offers landlords:
- Predictable income: Reduced void periods and rent certainty
- Lower management burden: Operators manage maintenance and compliance
- Reputational value: Established nurseries boost property credibility and resale potential
Demonstrating Market Appeal
Marketing properties professionally to day nursery operators in London increases interest and lease terms. Our specialist agents connect landlords with vetted operators, assist with compliance checks, and position properties competitively.
Operators value flexible, sustainable properties integrated with the community. Adaptable layouts, energy-efficient features, and outdoor space for nature-based play improve a building’s long-term appeal.
South London’s growing population, childcare shortages, regeneration projects, and commercial property stock create ideal conditions for nursery expansion. Landlords with suitable, compliant properties can secure stable, long-term tenants and premium lease rates.
Understanding rules around safe access, outdoor space, flexible layouts, fire safety, and parking requirements allows landlords to position properties strategically for lease.
Professional guidance simplifies planning, compliance, and operator matches, ensuring your South London property becomes a valuable, income-generating asset meeting local childcare needs.
For guidance on assessing your property for nursery use, get in touch to discuss your options.