#Business property advisor Christie & Co today released its ’Childcare & Education: Market Review 2025’, which analyses the childcare and education markets in the first six months of this year, including the children’s social care markets.

The children’s social care property market remains robust, with properties benefiting from C2 or C2a use commanding premiums over those with standard residential (C3) use. This trend is driven by sustained demand from local authority commissioning teams and providers expanding services to keep children within their communities.

In Wales, the Health and Social Care Act – now law – makes it the first UK nation to ban profit in fostering and children’s residential care services. This legislative shift is prompting providers to restructure, with many seeking expert guidance to navigate the transition.

Despite a quieter first half of 2025, Christie & Co saw a surge in children’s care business owners actively reviewing their preparedness for sale, focusing on legal, financial and operational considerations, through the eyes of alternative operators, buyers and investors. Buyer interest remains strong, particularly for high-quality, established providers in England, with many entrants motivated by a genuine commitment to improving outcomes for children and young people.

The finance landscape

According to Christie Finance, the lending appetite for the UK childcare and education sector remains strong, underpinned by favourable economic conditions, stable interest rates and supportive government policies. The broker also noted that lenders are showing a growing interest in supporting businesses that contribute positively to society. The childcare and education sectors align well with the priorities of ethical investors and lenders who are actively seeking purpose-led businesses.

Julie Kitson, director at Christie & Co, said: “Despite the ever-changing landscape within this sector, the demand for quality businesses remains strong.  Although appetite continues to be focused on education for corporate operators, mid-range buyers are still looking for children’s homes with a Good Ofsted rating and well-managed homes. Emphasis on good outcomes for children is still paramount, with thoughts on retaining children beyond 16 years-plus. We continue to work with operators looking to expand their portfolios, and expect this to continue well into 2026.”

To read the report click here