Care Property Sourcing: Finding Suitable UK Care Property

A practical guide for care operators, investors, landlords and developers sourcing suitable care property across London and the UK

Care property sourcing involves identifying, assessing and securing buildings that can support residential care, nursing care, specialist care or other healthcare-related services.

For care operators, finding the right property can be the starting point for opening a new service, expanding an existing operation or relocating to premises that better suit residents' needs. For landlords and investors, suitable care property can provide opportunities to lease buildings to established operators, refurbish former care facilities or reposition underused healthcare assets.

However, successful care property sourcing involves more than finding a large building with several bedrooms. Planning, regulatory requirements, accessibility, fire safety, building condition, location, refurbishment costs and the intended care model all need to be considered.

In England, premises used for regulated care need to meet relevant regulatory requirements. For example, CQC guidance for nursing homes requires premises to have suitable design and layout, be secure and adequately maintained, with equipment that is suitable for users' needs.

What does care property sourcing involve?

Care property sourcing is the process of finding and assessing property that could potentially accommodate a care operation.

A sourcing requirement may include:

• Care homes for sale

• Care homes to rent

• Nursing home property

• Former care homes

• Vacant care facilities

• Specialist healthcare property

• Large residential properties

• Former nursing homes

• Purpose-built care facilities

• Development opportunities

• Freehold care property

• Leasehold care property

• Property suitable for conversion

The search should begin with a clear property brief.

An operator looking for a small residential care home will have different requirements from a nursing provider seeking a 60-bed facility or a specialist operator looking for dementia care property.

Define the care property requirement

Before beginning a property search, operators should establish the main requirements for the service.

These can include:

• Preferred location

• Number of residents

• Minimum floor area

• Number of bedrooms

• En-suite requirements

• Accessibility

• Communal space

• Kitchen facilities

• Staff accommodation

• Outdoor space

• Parking

• Planning position

• Purchase budget

• Rental budget

• Refurbishment requirements

• Specialist equipment requirements

The operator should also establish whether the property needs to be operational immediately or whether a refurbishment period is acceptable.

A building requiring substantial work may provide an opportunity to create a better layout, but refurbishment costs need to be included in the overall property appraisal.

Types of care property to source

Care property requirements vary depending on the service being delivered.

Residential care property

Residential care homes provide accommodation and personal care to residents.

Potential property types include:

• Former residential care homes

• Large detached houses

• Purpose-built care homes

• Former hotels

• Specialist residential buildings

Nursing home property

Nursing homes require additional consideration because nursing care forms part of the service.

Potential property requirements can include:

• Accessible bedrooms

• En-suite bathrooms

• Treatment areas

• Staff facilities

• Medication storage

• Specialist equipment space

• Suitable clinical infrastructure

Nursing homes in England must be registered with CQC before operating.

Dementia care property

Dementia care property may require features such as:

• Clear circulation

• Appropriate lighting

• Accessible bathrooms

• Secure gardens

• Quiet areas

• Communal spaces

• Simple wayfinding

• Safe outdoor areas

A standard care home may require considerable adaptation before becoming appropriate for specialist dementia care.

Specialist care property

Other sourcing requirements can include property for:

• Physical disability care

• Learning disability care

• Mental health services

• Acquired brain injury care

• Complex care

• Neurological rehabilitation

• Palliative care

• Specialist residential care

The property should always be assessed against the intended service rather than relying solely on its previous use.

Where can care property opportunities be found?

Care property opportunities can come from several sources.

These can include:

• Existing care homes

• Former care homes

• Vacant nursing homes

• Healthcare property disposals

• Private residential buildings

• Commercial buildings suitable for conversion

• Development sites

• Landlord portfolios

• Property investors

• Off-market opportunities

Off-market sourcing can be particularly useful where an owner may consider selling or leasing a property despite not actively advertising it.

A specialist property search can therefore extend beyond conventional commercial property listings.

Former care homes as sourcing opportunities

Former care homes are often considered because they may already contain infrastructure required for residential care.

Potential features include:

• Multiple bedrooms

• En-suite bathrooms

• Communal lounges

• Dining areas

• Commercial kitchens

• Staff offices

• Laundry facilities

• Accessible entrances

• Lifts

• Fire safety infrastructure

• Gardens

• Parking

• Storage

However, previous care use does not automatically make a property suitable for a new operator.

A former care home may have been vacant for an extended period or may require significant investment in fire safety, electrical systems, accessibility, heating, bathrooms and other building services.

Its previous CQC history can provide useful background information, but the new operator still needs to establish the current regulatory and property position.

Planning should be investigated early

Planning is a key part of care property sourcing.

Before making an offer, buyers and operators should investigate:

• Current lawful use

• Previous use

• Planning history

• Existing permissions

• Planning conditions

• Proposed care use

• Required alterations

• Extension potential

• Parking

• Local planning policies

A building may appear physically suitable but still present planning difficulties if the proposed use or refurbishment requires additional consent.

Planning advice can be particularly important where a conventional residential property is being considered for conversion into a care facility.

Regulatory requirements and care property

Property sourcing should be considered alongside the regulatory requirements of the proposed service.

For example, nursing homes in England must register with CQC. CQC also requires nursing home premises to have suitable design and layout, be secure and adequately maintained, and have equipment appropriate for the people using the service.

Different care models can involve different regulatory arrangements. A children's home, for example, is primarily regulated by Ofsted, while a children's home that directly provides certain CQC-regulated healthcare activities may need registration with both regulators.

This makes it important to identify the intended service before selecting the property.

Assess the building before committing

A detailed building survey can help establish whether a property is genuinely suitable.

Areas to assess include:

• Roof

• Structural condition

• Damp and water ingress

• Electrical installations

• Heating

• Plumbing

• Drainage

• Ventilation

• Windows and doors

• Fire alarm systems

• Emergency lighting

• Fire doors

• Lifts

• Bathrooms

• Kitchen equipment

• Water systems

• Accessibility

• External areas

For larger care properties, specialist surveys may also be required.

The objective is to identify major capital expenditure before the acquisition or lease is agreed.

Bedroom configuration matters

The number of bedrooms is only one part of a care property assessment.

Operators should consider:

• Bedroom sizes

• Single or shared accommodation

• En-suite provision

• Accessible rooms

• Natural light

• Ventilation

• Privacy

• Bathroom access

• Circulation space

• Space for specialist equipment

The number of bedrooms should also be considered alongside the property's communal facilities.

A building with many small bedrooms but inadequate lounges, dining space or staff facilities may not be suitable for the intended number of residents.

Communal and resident areas

Care property needs appropriate shared spaces as well as bedrooms.

Potential facilities include:

• Lounges

• Dining rooms

• Activity rooms

• Quiet rooms

• Therapy spaces

• Visitor areas

• Reception

• Kitchens

• Consultation rooms

The requirements will vary according to the type of care being provided.

For example, dementia care may require particular attention to wayfinding and safe outdoor areas, while a specialist rehabilitation facility may require therapy and treatment spaces.

Accessibility and mobility

Accessibility should be assessed during the initial property search rather than after a building has been secured.

Potential requirements include:

• Level access

• Accessible entrances

• Lifts

• Wide corridors

• Accessible bedrooms

• Adapted bathrooms

• Handrails

• Suitable circulation areas

• Accessible gardens

• Accessible parking

A property with several floors but no suitable lift may have limited potential for certain care models.

Likewise, narrow corridors, small bathrooms or stepped entrances can create substantial refurbishment costs.

Kitchen, laundry and operational areas

Back-of-house facilities can have a major effect on the suitability of a care property.

Depending on the operation, the property may need:

• Commercial kitchen

• Food storage

• Laundry

• Linen storage

• Cleaning storage

• Waste storage

• Staff changing facilities

• Maintenance storage

• Delivery access

These areas should be included in the property brief from the beginning.

Outdoor space and gardens

Outdoor space can be valuable for many types of care property.

Potential features include:

• Private gardens

• Secure boundaries

• Accessible paths

• Level areas

• Seating areas

• Covered outdoor space

• Activity areas

• Sensory gardens

The appropriate design depends on the residents.

For some services, accessibility will be the main consideration. For others, privacy, security or opportunities for outdoor activities may be more important.

Fire safety and building compliance

Fire safety should be considered carefully when sourcing care property.

The assessment may need to cover:

• Escape routes

• Fire doors

• Alarm systems

• Emergency lighting

• Compartmentation

• Fire-resistant construction

• Evacuation arrangements

• Accessibility during evacuation

Building regulations may also apply to refurbishment and alterations. GOV.UK advises that building control approval may be required for certain works, with specific arrangements applying to higher-risk buildings.

Professional advice should therefore be obtained where substantial alterations are proposed.

Location and local services

The location of a care property can affect both the operation and long-term suitability of the building.

Operators may consider:

• Local demographics

• Existing care provision

• Hospitals

• GP services

• Pharmacies

• Public transport

• Staff recruitment

• Family accessibility

• Local amenities

• Parking

• Residential surroundings

Specialist care providers may also require proximity to particular healthcare or community services.

A property should therefore be assessed in the context of the people who will use the service.

Buying versus leasing care property

Care operators can consider either purchasing or leasing premises.

Buying

Buying can provide greater control over:

• Refurbishment

• Building alterations

• Long-term occupation

• Property investment

• Future development

• Operational changes

However, acquisition requires significant capital and leaves the operator responsible for ownership costs.

Leasing

Leasing can reduce the initial capital requirement and allow the operator to concentrate resources on establishing and operating the care service.

The lease should clearly address:

• Permitted use

• Planning responsibilities

• Repairs

• Maintenance

• Refurbishment

• Alterations

• Compliance

• Insurance

• Lease length

• Break clauses

• Renewal

• Assignment

For specialist care premises, these provisions can materially affect long-term operating costs.

Care property sourcing for investors

Investors may approach care property from a property investment perspective.

Potential strategies include:

• Buying an existing care home

• Acquiring a former care facility

• Purchasing vacant nursing home property

• Refurbishing a building for an operator

• Developing purpose-built care accommodation

• Leasing property to an established care provider

• Repositioning an underused healthcare asset

Investment analysis should consider the property itself, operator, lease structure, refurbishment costs, planning position and local market conditions.

The underlying property should also retain value independently of assumptions about a particular operator.

What landlords should consider

Landlords with suitable care property may be able to attract specialist operators.

Before agreeing a lease, landlords should establish:

• Proposed care model

• Number of residents

• Planning position

• Required alterations

• Operator responsibilities

• Repair obligations

• Insurance

• Compliance responsibilities

• Lease length

• Financial strength of the operator

Where significant refurbishment is required, responsibility for funding and maintaining the works should be documented clearly.

Care property sourcing in London

London has a diverse range of residential, commercial and specialist healthcare property, but suitable care premises can be difficult to source.

Potential searches may include:

• Greater London

• North London

• South London

• East London

• West London

• Outer London

• London commuter areas

• Regional towns

The appropriate location will depend on the operator's target residents, budget, staffing requirements, property size and planning position.

A large former care property outside Central London may offer a different proposition from a smaller specialist property within an established London neighbourhood.

Due diligence before securing care property

Before exchanging contracts or signing a long-term lease, operators and investors should consider obtaining:

• Title information

• Planning history

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