Care Sector Property Agent: Finding Specialist UK Care Property

A practical guide for care providers, healthcare operators, investors, landlords and developers working with a care sector property agent across London and the UK

Finding suitable property for a care business requires a different approach from a conventional commercial property search. A care home, nursing facility, supported living property or specialist healthcare building needs to work for the people using the service as well as the operator, staff, landlord and regulator.

A care sector property agent can help clients identify suitable buildings, assess acquisition or leasing opportunities and coordinate the property considerations involved in establishing or expanding a care service.

For care providers entering a new area, established operators expanding their portfolios and investors looking for healthcare property, specialist property advice can help create a more structured search.

What is a care sector property agent?

A care sector property agent specialises in property requirements connected with health, social care and specialist residential services.

Depending on the client's requirements, this can involve sourcing:

• Care homes

• Nursing homes

• Residential care properties

• Supported living properties

• Specialist care accommodation

• Dementia care homes

• Disability care properties

• Rehabilitation centres

• Healthcare premises

• Former care homes

• Former nursing homes

• Large residential properties

• Domiciliary care offices

• Development sites for care facilities

The agent's role can extend beyond simply introducing properties. A specialist assignment may involve defining the property brief, identifying opportunities, assessing suitability, supporting negotiations and coordinating property due diligence.

Why care property requires specialist knowledge

A conventional property search often focuses on location, size, price and condition.

Care-sector property searches can require additional considerations such as:

• Resident capacity

• Bedroom configuration

• Bathroom provision

• Accessibility

• Communal areas

• Staff facilities

• Fire safety

• Planning

• Building regulations

• CQC requirements

• Parking

• Outdoor space

• Specialist equipment

• Refurbishment costs

CQC states that premises used by regulated providers must be clean, secure, suitable for their purpose, properly maintained and appropriately located. The guidance also considers whether the premises are large enough for the number of people using the service and whether adequate facilities are available.

This makes property assessment an important part of planning a care operation.

Start with a detailed property brief

A care sector property agent should begin by understanding exactly what the client needs.

The brief may include:

• Target location

• Purchase budget

• Rental budget

• Number of beds

• Number of residents

• Care model

• Specialist care requirements

• Bedroom requirements

• En-suite requirements

• Accessibility

• Communal space

• Staff areas

• Kitchen facilities

• Garden space

• Parking

• Therapy rooms

• Storage

• Potential expansion

• Refurbishment budget

The more precise the brief, the easier it becomes to distinguish suitable opportunities from properties that may look attractive but are difficult to operate as care premises.

Existing care properties can offer a starting point

Former and existing care properties are often considered by operators because they may already contain specialist infrastructure.

Potential features include:

• Multiple bedrooms

• En-suite bathrooms

• Communal lounges

• Dining areas

• Commercial kitchens

• Staff offices

• Laundry facilities

• Accessible entrances

• Lifts

• Fire safety systems

• Storage areas

• Gardens

• Parking

However, previous care use should not be treated as automatic evidence that a property is suitable for a new operator.

The building may have deteriorated during a period of vacancy, require substantial refurbishment or have planning and regulatory issues that need to be resolved.

Large residential properties can also be considered

A care sector property agent may also search outside the traditional care-property market.

Potential opportunities include:

• Large detached houses

• Former guest houses

• Former schools

• Former healthcare buildings

• Large residential facilities

• Underused commercial properties

• Development sites

A large house could potentially provide bedrooms, communal areas, staff facilities and outdoor space, depending on the intended service.

However, conversion may require planning permission, building regulations approval, accessibility works, fire safety improvements and significant internal alterations.

Match the building to the care model

Different care services require different types of property.

A residential care home may need a different layout from a nursing home. A dementia service may require carefully considered circulation, wayfinding and secure outdoor areas. A rehabilitation facility may need therapy and treatment rooms.

Specialist services can include:

• Elderly care

• Nursing care

• Dementia care

• Learning disability care

• Physical disability care

• Mental health care

• Complex care

• Neurological care

• Rehabilitation

• Substance misuse services

The property should therefore be assessed against the proposed service rather than simply its previous use.

Location matters to care operators

A care property needs to work for residents, families, staff and the wider service.

A property search may assess:

• Public transport

• Healthcare facilities

• Hospitals

• GP services

• Shops

• Community facilities

• Schools where relevant

• Staff recruitment

• Parking

• Local demand

• Nearby services

• Residential surroundings

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

For this reason, a care sector property agent should assess the surrounding area rather than evaluating the building in isolation.

Planning should be investigated early

Planning is one of the most important property considerations for care operators.

Before proceeding with a property, the buyer or tenant should investigate:

• Existing lawful use

• Previous use

• Planning history

• Planning conditions

• Proposed use

• Change of use requirements

• Extension potential

• Parking arrangements

• External alterations

• Local planning constraints

A former care home may have useful planning history, but this does not necessarily mean that every proposed care use or redevelopment scheme will be permitted.

Where substantial conversion is required, planning advice should be obtained before committing significant funds to the property.

CQC requirements and care property

For regulated care services in England, the relationship between the property and CQC registration is particularly important.

CQC's current location guidance states that care homes are locations where people live as their main or sole residence and receive care or treatment. It also identifies premises from which domiciliary care and supported living services are organised and managed as locations.

CQC also requires information about each relevant location during registration, including details such as the number of places or beds and planning and building-regulations information.

A property agent should therefore understand the proposed service sufficiently to identify property issues that could affect the provider's registration process.

Check whether the premises are suitable

A care property should be assessed beyond its appearance during a viewing.

Important considerations include:

• Building condition

• Roof

• Damp

• Structural condition

• Heating

• Electrical systems

• Plumbing

• Drainage

• Ventilation

• Fire safety

• Emergency lighting

• Lifts

• Bathrooms

• Kitchen

• Accessibility

• Security

• External areas

CQC's Regulation 15 guidance requires premises to be suitable for their intended purpose and properly maintained. It also states that premises should provide sufficient facilities and take account of the needs of people using the service.

A professional building survey can identify problems that may substantially change the economics of an acquisition.

Bedrooms and bathrooms need careful assessment

For residential care property, room configuration can be more important than headline floor area.

A property assessment should consider:

• Number of bedrooms

• Bedroom sizes

• Single occupancy

• En-suite bathrooms

• Accessible rooms

• Wet rooms

• Bathroom capacity

• Circulation space

• Privacy

• Natural light

• Ventilation

• Potential for adaptation

CQC guidance specifically refers to sufficient toilets, bathrooms, storage and seating where relevant to the service.

A building with a large number of bedrooms may therefore require significant alterations before it becomes operationally suitable.

Communal and staff facilities

A care property also needs spaces that support day-to-day operations.

Depending on the service, these can include:

• Communal lounges

• Dining rooms

• Activity rooms

• Quiet rooms

• Therapy rooms

• Consultation rooms

• Staff offices

• Staff rest areas

• Laundry

• Storage

• Medication areas

• Kitchen facilities

• Reception areas

These requirements should be included in the property brief before viewing potential buildings.

Accessibility should be assessed from the beginning

Accessibility can be particularly important for care providers supporting older people and people with disabilities or mobility needs.

Potential features include:

• Level access

• Ramps

• Lifts

• Accessible bathrooms

• Wet rooms

• Wide doorways

• Handrails

• Accessible parking

• Suitable circulation space

• Mobility equipment storage

• Adapted bedrooms

CQC requires providers to take people's needs into account when premises are designed, built, maintained, renovated or adapted, including making reasonable adjustments for people with disabilities.

Where a property requires extensive adaptation, the estimated works should be incorporated into the acquisition or leasing decision.

Refurbishment can change the economics

The asking price or rent does not tell the whole story.

A care property may require:

• Bathroom upgrades

• Kitchen refurbishment

• Fire safety works

• Electrical upgrades

• Heating replacement

• Accessibility improvements

• Internal reconfiguration

• Flooring

• Decoration

• Security improvements

• Lift repairs

• Garden works

A care sector property agent can help identify potential refurbishment issues at an early stage, while specialist surveyors and contractors can provide detailed technical assessments and cost estimates.

Buying or leasing care property

Care operators can acquire premises through either purchase or lease.

Buying can provide:

• Long-term control

• Greater control over refurbishment

• Potential capital appreciation

• Greater occupational security

• Potential resale value

Leasing can provide:

• Lower initial capital requirements

• Faster access to premises

• Greater flexibility

• Opportunities to expand into additional locations

Lease terms should be examined carefully, particularly where the operator plans to invest substantial capital into the property.

Important considerations include:

• Lease length

• Rent reviews

• Break clauses

• Repair obligations

• Alterations

• Planning responsibilities

• Compliance responsibilities

• Insurance

• Dilapidations

• Assignment

• Subletting

• Landlord consent

Off-market care property opportunities

Some suitable properties may never be widely advertised.

A specialist property agent may identify opportunities involving:

• Vacant care homes

• Former nursing homes

• Private healthcare premises

• Owners considering retirement

• Underused buildings

• Landlords seeking specialist occupiers

• Former residential facilities

• Development opportunities

Off-market sourcing can be useful where an operator has a highly specific property brief or wants to explore opportunities before they are broadly marketed.

Care property for domiciliary and homecare operators

Not every care provider requires a residential property.

Domiciliary care providers may need an operational office from which regulated activities are organised and managed.

CQC identifies premises from which providers manage care delivered in people's homes as locations, and says these premises will usually be offices.

A property search for a homecare provider may therefore focus on:

• Office space

• Management workspace

• Staff meeting rooms

• Training facilities

• Secure records

• Accessibility

• Parking

• Public transport

• Appropriate business use

CQC also makes clear that a virtual office is not considered a location for registration.

Assess the property as an investment

For landlords and investors, care-sector property can form part of a specialist property investment strategy.

Potential approaches include:

• Acquiring a care home and leasing it to an operator

• Refurbishing a former care facility

• Acquiring a nursing home

• Developing specialist care accommodation

• Converting a suitable residential property

• Holding a healthcare property as a long-term investment

The financial appraisal should account for:

• Acquisition costs

• Stamp Duty Land Tax

• Financing

• Professional fees

• Planning

• Refurbishment

• Insurance

• Maintenance

• Management

• Potential void periods

Investor demand should be assessed against the actual suitability of the building and the needs of potential operators.

Due diligence before committing

Before purchasing or leasing a care property, the client should consider obtaining:

• Title information

• Property searches

• Planning history

• Building survey

• Building control records

• Fire safety documentation

• Asbestos information where applicable

• EPC

• Utilities information

• Previous care use information

• CQC information where relevant

• Equipment records

• Refurbishment quotations

• Insurance information

• Existing lease documentation

CQC's registration process specifically asks providers to provide information relating to planning, building regulations, equipment and landlord details for relevant locations.

Care sector property agents in London

London can offer a wide range of healthcare and specialist residential property opportunities, although suitable buildings can be difficult to secure.

A London care property search may need to consider:

• High acquisi