Specialist Property Sourcing for the Care Sector

A practical guide for care providers, healthcare operators, supported living providers, nursing home operators, investors, landlords and developers sourcing specialist property across London and the UK

Finding suitable property for the care sector requires a different approach from a conventional residential property search. A building may have enough bedrooms and still be unsuitable for the intended care model because of its layout, accessibility, planning position, location, condition or regulatory requirements.

Specialist property sourcing for the care sector involves identifying properties that can support the operator's intended service, assessing their suitability and considering the wider acquisition, planning, refurbishment and operational requirements.

Potential opportunities can include existing care homes, nursing homes, former healthcare buildings, large residential properties, supported living accommodation, specialist disability housing, rehabilitation facilities and development opportunities.

What is specialist property sourcing for the care sector?

Specialist property sourcing means searching for property around the requirements of a particular care or support service rather than simply searching by property type or number of bedrooms.

A care property search may involve:

• Residential care homes

• Nursing homes

• Dementia care homes

• Specialist disability accommodation

• Supported living properties

• Supported accommodation

• Children's homes

• Rehabilitation centres

• Former healthcare properties

• Former care homes

• Large residential properties

• Purpose-designed care accommodation

• Conversion and development opportunities

The right property depends on the people being supported, the service model, the operator's budget and the regulatory framework that applies to the proposed service.

Start with the care model

The first stage of a specialist property search should be understanding what the provider intends to deliver.

Different services can have substantially different property requirements.

For example:

Residential care

A residential care operator may require:

• Multiple bedrooms

• Accessible bathrooms

• Communal lounges

• Dining facilities

• Kitchen facilities

• Staff areas

• Storage

• Gardens

• Parking

Nursing care

A nursing home may have additional requirements for:

• Clinical equipment

• Medication storage

• Accessible bedrooms

• Nursing stations or staff areas

• Enhanced bathrooms

• Equipment storage

• Suitable circulation space

Dementia care

A dementia care property may need particular attention to:

• Clear wayfinding

• Safe circulation

• Secure outdoor space

• Appropriate lighting

• Accessible facilities

• Quiet areas

• Communal spaces

Supported living

Supported living may involve self-contained flats, shared houses, bungalows or purpose-designed accommodation depending on residents' needs. Government guidance on Local Supported Housing Strategies identifies supported living as a form of long-term supported housing and encourages local authorities to assess supply, unmet need and future demand.

The property search should therefore begin with the service model rather than a generic property specification.

Build a detailed property brief

Once the care model has been established, the operator can create a property brief.

This may include:

• Type of service

• Resident profile

• Number of residents

• Age range

• Number of bedrooms

• Bathroom requirements

• Accessibility

• Communal areas

• Staff accommodation

• Overnight staffing requirements

• Kitchen facilities

• Therapy or treatment areas

• Outdoor space

• Parking

• Preferred locations

• Purchase budget

• Rental budget

• Lease requirements

• Refurbishment budget

A detailed brief makes it easier to filter properties before arranging viewings and commissioning surveys.

Existing care properties can be useful acquisition targets

Existing and former care properties can provide an efficient starting point for a specialist search because they may already contain facilities associated with residential care.

Potential features include:

• Resident bedrooms

• En-suite bathrooms

• Communal lounges

• Dining rooms

• Kitchens

• Laundry facilities

• Staff offices

• Accessible entrances

• Lifts

• Gardens

• Parking

• Storage

Former care homes, nursing homes and other healthcare buildings may also offer conversion opportunities.

However, previous use should not be treated as a guarantee of future suitability. The operator still needs to investigate planning, building condition, legal occupancy and the requirements of the proposed service.

Large residential properties can also be considered

Specialist care property sourcing does not have to be limited to buildings previously used for care.

Large houses and other residential properties may be considered where their layout, location and planning position make them appropriate for the proposed service.

Potential targets can include:

• Large detached houses

• Former guest houses

• Former care homes

• Former children's homes

• Former nursing homes

• Former healthcare properties

• Large residential buildings

• Properties suitable for conversion

A conventional property can sometimes require substantial work, so the total cost of acquisition, refurbishment, planning and compliance should be assessed before an operator proceeds.

Match property to resident needs

A specialist property needs to work for the people who will actually use it.

The assessment should consider:

• Mobility

• Physical disabilities

• Learning disabilities

• Dementia

• Mental health needs

• Complex care requirements

• Behavioural support needs

• Privacy

• Independence

• Need for specialist equipment

For care services regulated by CQC, Regulation 15 requires premises to be suitable for their intended purpose, properly maintained and appropriately located. CQC guidance also states that premises should be large enough for the number of people using the service and provide adequate support facilities where relevant.

This makes resident requirements an important part of the initial property search.

Location matters as much as the building

A property can look ideal internally but still be unsuitable because of its location.

The search should consider:

• Public transport

• Hospitals

• GP services

• Pharmacies

• Local shops

• Schools

• Community facilities

• Employment opportunities

• Leisure facilities

• Staff accessibility

• Parking

• Local amenities

• Surrounding properties

• Local demand

CQC guidance states that providers should consider the anticipated needs of people using the service and access to relevant facilities and the local community when planning premises.

For supported housing, local authority strategies can provide additional information about existing supply, unmet need and projected demand.

Planning should be assessed early

Planning can determine whether an otherwise attractive property is viable.

Before committing to a property, operators should investigate:

• Existing lawful use

• Previous use

• Planning history

• Proposed care use

• Planning conditions

• Change of use requirements

• Extension potential

• Internal alterations

• Parking

• Local planning restrictions

A former care home may have useful planning history, but operators should not assume that a previous care use automatically permits every proposed future use.

Planning advice should be obtained where the position is unclear.

CQC and other regulatory requirements

The applicable regulatory framework depends on the proposed service.

For regulated care services in England, CQC requirements can form an important part of the property assessment. CQC's Regulation 15 requires premises to be clean, secure, suitable for their purpose, properly maintained and appropriately located.

Children's homes and supported accommodation for eligible young people have different Ofsted requirements, while some supported housing models have additional local authority and housing considerations.

This is why a specialist property sourcing process should establish the intended service and regulator before recommending a building.

Bedrooms, bathrooms and communal facilities

The number of bedrooms should never be the only measure of suitability.

Operators should assess:

• Bedroom sizes

• Single or shared occupancy

• En-suite provision

• Bathroom capacity

• Accessible bedrooms

• Circulation space

• Communal lounges

• Dining areas

• Kitchens

• Activity rooms

• Quiet rooms

• Staff offices

• Storage

• Laundry facilities

CQC guidance specifically refers to adequate toilets, bathrooms, storage and seating or waiting space where relevant to the service.

A smaller property with a well-designed layout may therefore be more appropriate for a particular care model than a larger building with inefficient accommodation.

Accessibility and specialist adaptations

Accessibility should be assessed before an operator makes an offer.

Potential requirements include:

• Step-free entrances

• Ramps

• Accessible bathrooms

• Wide doorways

• Lifts

• Handrails

• Accessible gardens

• Mobility equipment storage

• Adapted kitchens

• Suitable parking

Government supported housing guidance also highlights adapted homes, apartments, bungalows, assistive technology and staff accommodation as examples of housing solutions that can help meet particular support needs.

For a property requiring adaptation, the cost and feasibility of the work should be established before acquisition.

Fire safety and building condition

Specialist care properties can have significant compliance and maintenance requirements.

A technical inspection should consider:

• Structural condition

• Roof

• Damp

• Heating

• Electrical systems

• Plumbing

• Drainage

• Fire alarm systems

• Fire doors

• Emergency lighting

• Escape routes

• Accessibility

• Lifts

• Ventilation

• External areas

Where a building requires refurbishment, fire safety and other compliance requirements should be incorporated into the project from the beginning.

Buying versus leasing specialist care property

Care providers can consider both acquisition and leasing.

Buying may offer greater control over:

• Refurbishment

• Building alterations

• Long-term occupation

• Future development

• Property investment

Leasing can reduce the initial capital requirement and may allow operators to expand their service more quickly.

A specialist care property lease should clearly address:

• Permitted use

• Planning responsibilities

• Repairs

• Maintenance

• Alterations

• Compliance

• Insurance

• Assignment

• Lease term

• Rent reviews

• Renewal provisions

Landlords should understand the intended care use before agreeing to a lease.

Off-market property sourcing

Some care operators have requirements that are difficult to satisfy through standard property portals.

An off-market search may identify:

• Private landlord properties

• Vacant care homes

• Former nursing homes

• Former healthcare buildings

• Former children's homes

• Investor-owned properties

• Large houses

• Development opportunities

• Buildings requiring refurbishment

This can be particularly useful when the provider needs a specific number of bedrooms, location, accessibility standard or purchase budget.

Refurbishment and conversion opportunities

Some suitable care properties will require investment before they can be used.

Potential works include:

• Bedroom reconfiguration

• Bathroom upgrades

• Accessibility improvements

• Fire safety works

• Electrical upgrades

• Heating replacement

• Plumbing works

• Kitchen refurbishment

• Lift improvements

• Internal reconfiguration

• External landscaping

The financial assessment should include the complete project cost rather than focusing only on the purchase price or rent.

For supported housing, current government guidance also recognises empty or underused buildings as potential opportunities for conversion or development.

Specialist care property investment

Investors may approach the sector from a different perspective.

Potential strategies include:

• Buying an existing care home

• Acquiring a vacant care property

• Leasing property to an established operator

• Refurbishing a former care facility

• Converting a residential property

• Developing specialist supported housing

• Holding a healthcare property as a long-term investment

The investment appraisal should consider operator demand, planning, refurbishment costs, financing, insurance, maintenance and potential vacancy.

Government housing programmes also recognise specialist and supported housing for older people, disabled people and people with transitional support needs as distinct housing categories.

Due diligence before committing to a property

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

• Title information

• Planning history

• Lawful use information

• Building survey

• Fire safety documentation

• Floor plans

• Building regulations information

• Gas and electrical certificates

• Asbestos information where applicable

• Accessibility assessment

• EPC

• Utilities information

• Lease documentation

• Refurbishment quotations

• Relevant regulatory history

• Local demand information

The objective is to understand whether the property can support the proposed service before the operator becomes committed to substantial expenditure.

Working with Fraser Bond

Fraser Bond can support care providers, healthcare operators, supported living providers, investors, landlords and developers looking for specialist property across London and the UK.

Property sourcing support can include:

• Specialist care property searches

• Off-market sourcing

• Property acquisition

• Lease negotiations

• Planning coordination

• Investment assessment

• Refurbishment planning

• Building works

• Contractor coordination

• Property management

• Development consultancy

The search can be built around the operator's service model, resident requirements, preferred locations, property specification and budget.

Find specialist care property across the UK

Specialist property sourcing for the care sector requires a broader assessment than simply finding a property with sufficient bedrooms.

The building, location, planning position, accessibility, condition, refurbishment requirements and regulatory framework all need to be considered alongside the operator's intended service.

Fraser Bond can help care providers, healthcare operators, investors and landlords identify and assess specialist property opportunities across London and the wider UK.

Whether you are looking for a care home, nursing home, supported living property, specialist disability accommodation, rehabilitation centre, former healthcare building or conversion opportunity, a structured sou