Children's Home Property Sourcing: Finding Suitable UK Properties

A practical guide for children's home providers, investors, landlords and developers sourcing suitable property across London and the UK

Children's home property sourcing requires careful consideration of the building, location, planning position, safeguarding requirements and needs of the children who will live there. For providers planning to establish a children's home in England, finding a suitable property is only the first stage. The proposed premises and location must also support the intended service and satisfy the requirements of the registration process.

Potential properties can include large detached houses, former children's homes, former care homes, specialist residential buildings, converted properties and purpose-designed accommodation. The most suitable option will depend on the provider's statement of purpose, the needs of the children and the type of care the home intends to provide.

Ofsted requires providers to register before operating a children's home, and the proposed location must be assessed carefully before an application is submitted. Appropriate planning permission is also required where applicable.

What is children's home property?

Children's home property is accommodation used to provide care and accommodation for children away from their families.

Children's homes can provide different forms of residential care, including homes for children with:

• Emotional or behavioural difficulties

• Physical disabilities

• Learning disabilities

• Mental disorders

• Drug dependence

• Alcohol dependence

• Sensory impairment

Ofsted's current registration framework also covers residential homes accommodating disabled children and other specialist children's homes.

The property therefore needs to be assessed according to the specific category of service rather than simply being marketed as a large residential house.

Start with a detailed property brief

Before beginning a children's home property search, providers should establish exactly what the proposed home requires.

A property brief may include:

• Number of children

• Maximum registered places

• Number of bedrooms

• Bedroom sizes

• Number of bathrooms

• Ground-floor accommodation

• Accessibility requirements

• Communal living areas

• Kitchen facilities

• Quiet or sensory spaces

• Staff office

• Staff facilities

• Sleep-in arrangements where required

• Garden or outdoor space

• Parking

• Storage

• Security requirements

• Preferred location

• Transport requirements

• Purchase budget

• Maximum rent

• Refurbishment requirements

The property's proposed capacity should be considered carefully because Ofsted places a maximum number of children as a condition of registration.

What types of property can work for a children's home?

There is no single building type suitable for every children's home.

Large detached houses

Large detached houses are commonly considered because they can provide several bedrooms, communal areas, gardens and space for staff facilities.

A residential environment can also help the property feel like a home rather than an institutional setting.

However, the size of a house alone does not determine whether it is suitable.

Former children's homes

A former children's home can provide an interesting sourcing opportunity because the building may already have an appropriate residential layout and operational infrastructure.

The previous use should still be investigated carefully. The property's existing planning position, condition, registration history and alterations should all be reviewed before purchase or lease.

Former care homes

Former care homes and specialist residential care properties can provide larger buildings with multiple bedrooms, bathrooms, kitchens and communal facilities.

They may require significant adaptation to create an appropriate children's home environment, particularly where the existing property was designed around an older or adult care model.

Specialist residential properties

Properties previously used for education, healthcare or specialist residential services may also be considered where the building can be adapted appropriately.

Each property should be assessed against the proposed children's home rather than assuming that its previous use makes it suitable.

Planning should be checked before committing to a property

Planning is a major consideration when sourcing children's home property.

Providers should establish:

• The current lawful use

• Previous lawful use

• Planning history

• Existing planning permissions

• Planning conditions

• Whether the proposed children's home use requires permission

• Whether refurbishment requires planning approval

• Whether extensions require consent

• Whether the local authority has concerns about the proposed use

Ofsted's current application guidance states that applicants must provide evidence relating to planning permission, confirmation that planning permission is not required, confirmation that the existing use class allows the proposed use, or evidence of a planning application. Ofsted strongly recommends waiting until any required planning permission has been granted before applying.

This makes planning due diligence an important part of the property sourcing process rather than something to leave until after acquiring the building.

Location assessment is a central part of sourcing

A suitable children's home is not determined by the building alone.

Ofsted requires applicants to demonstrate that they have properly considered the suitability of the proposed location. The location assessment should consider local need, safety, community risks, accessibility of services and whether the location meets the needs of the children described in the home's statement of purpose.

Providers should therefore investigate:

• Local safeguarding concerns

• Crime and exploitation risks

• Local healthcare

• GP and dental services

• CAMHS and other specialist services

• Schools and special schools

• Public transport

• Local employment opportunities where relevant

• Leisure facilities

• Parks and recreational areas

• Community facilities

• Faith and cultural services

• Environmental hazards

• Proximity to other children's homes

The provider must also consult relevant local bodies and services, including the police and local authority children's services, and ask the local authority whether a new children's home is needed in the proposed area.

Consider the needs of the children

Property sourcing should begin with the intended resident group.

For example, a home for children with physical disabilities may require:

• Level access

• Accessible bedrooms

• Accessible bathrooms

• Wet rooms

• Wider doorways

• Wheelchair circulation

• Adapted kitchens

• Hoist provision

• Equipment storage

• Accessible parking

A home for children with emotional or behavioural needs may place greater emphasis on:

• Safe circulation

• Appropriate bedroom layouts

• Communal areas

• Quiet spaces

• Secure storage

• Outdoor space

• Appropriate boundaries

• Proximity to education and support services

The property specification should therefore follow the service model.

Bedrooms and private space

Bedrooms are one of the most important elements of children's home property sourcing.

Providers should assess:

• Number of bedrooms

• Bedroom sizes

• Privacy

• Natural light

• Ventilation

• Storage

• Bathroom access

• Ground-floor rooms

• Accessibility

• Staff observation requirements where relevant

The objective is not simply to maximise the number of bedrooms.

A property with fewer but better-configured bedrooms may provide a more suitable environment for the intended children and service model.

Communal areas should feel residential

Communal spaces can play an important role in creating a stable home environment.

Potential facilities include:

• Lounge

• Dining room

• Shared kitchen

• Study area

• Activity room

• Quiet room

• Sensory space

• Laundry

• Garden

• Outdoor activity area

The property should provide an appropriate balance between shared activities and private space.

A large building with limited usable communal space may require substantial refurbishment before it can function effectively as a children's home.

Outdoor space can be valuable

Gardens and outdoor areas can provide opportunities for recreation, activities and everyday life.

Potential features include:

• Private garden

• Secure boundaries

• Lawns

• Patio areas

• Play areas

• Outdoor seating

• Accessible paths

• Gardening areas

The safety and accessibility of the outdoor environment should be assessed alongside the interior of the building.

Accessibility and building condition

A property intended for children with disabilities or complex needs may require specialist adaptations.

Potential works could include:

• Ramps

• Lifts

• Accessible bathrooms

• Wet rooms

• Handrails

• Wider doors

• Accessible kitchens

• Specialist equipment

• Improved circulation

• Accessible parking

The building survey should also examine:

• Roof

• Damp

• Structural condition

• Windows

• Heating

• Electrical systems

• Plumbing

• Drainage

• Fire safety systems

• Emergency lighting

• Ventilation

• External areas

Ofsted's registration process includes assessment of the premises during the registration visit, so providers should ensure the property is capable of supporting the proposed service.

Staff facilities need to be planned into the property

Children's homes require appropriate facilities for staff as well as children.

Depending on the service model, this can include:

• Staff office

• Meeting room

• Staff WC

• Secure records storage

• Medication storage where required

• Equipment storage

• Staff kitchen facilities

• Sleep-in room

• Secure staff storage

These requirements should be included in the initial property brief rather than treated as secondary considerations.

Security and safeguarding

Security should be considered without creating an unnecessarily institutional environment.

The provider may need to assess:

• Boundary security

• External doors

• Windows

• Visitor arrangements

• Internal circulation

• Staff access

• Secure storage

• External lighting

• Garden access

• Local crime risks

• Nearby environmental hazards

Ofsted's location guidance specifically expects providers to understand the community, identify known risks and demonstrate how those risks will be managed.

Multi-building children's homes

Some providers may consider operating across multiple buildings.

Ofsted allows a multi-building children's home to accommodate up to six children across up to four buildings under a single registration, subject to the applicable requirements. Each building must be identified in the application and addressed within the location assessment process.

This can create additional sourcing possibilities, but geographical spread, management arrangements, safeguarding and access to local services all need to be considered.

Buying children's home property

Buying can give an operator greater control over the building and future refurbishment.

Potential advantages include:

• Long-term control

• Greater freedom to make alterations

• Ability to design around the service model

• Potential capital appreciation

• Reduced reliance on landlord decisions

However, buyers need to account for:

• Purchase costs

• Stamp Duty Land Tax

• Professional fees

• Planning

• Refurbishment

• Financing

• Insurance

• Maintenance

• Compliance works

The acquisition should be based on a realistic assessment of the total project cost rather than the purchase price alone.

Leasing children's home property

Leasing can allow a provider to establish a children's home without purchasing the property.

Important lease terms can include:

• Lease length

• Rent

• Rent reviews

• Break clauses

• Repair obligations

• Alteration rights

• Planning responsibility

• Insurance

• Service charges

• Dilapidations

• Assignment

• Subletting

Landlords should understand the proposed children's home use before agreeing a lease.

Where significant adaptations are required, the lease should clearly establish who pays for the works and what happens to those alterations when the lease ends.

Investing in children's home property

Investors may consider children's home property through several strategies.

These can include:

• Purchasing and leasing to an established operator

• Acquiring a former care property

• Refurbishing a large residential property

• Developing specialist accommodation

• Acquiring an existing property and repositioning it

• Holding the property as a long-term specialist residential investment

Investment analysis should consider the operator, lease structure, property condition, planning, local demand, refurbishment costs and long-term maintenance.

Investors should also distinguish between owning the property and operating the regulated children's home. The property owner does not automatically acquire the operator's Ofsted registration.

Buying a children's home business versus buying property

A property transaction and an operating business transaction are different.

Where an investor is acquiring an existing children's home business, additional due diligence may be required on:

• Ofsted registration

• Registration conditions

• Inspection history

• Statement of purpose

• Staffing

• Occupancy

• Contracts

• Policies

• Financial performance

• Regulatory compliance

Ofsted registration belongs to the provider and the registered service arrangements rather than simply transferring with the bricks and mortar.

A buyer should therefore obtain appropriate legal and regulatory advice before treating an existing children's home as a straightforward property acquisition.

Due diligence before committing to a property

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

• Title information

• Planning history

• Lawful use information

• Planning advice

• Building survey

• Fire safety information

• EPC

• Electrical inspection records

• Gas and heating records

• Asbestos information where applicable

• Accessibility assessment

• Flood risk information

• Drainage information

• Refurbishment quotations

• Existing warranties

• Previous use information

• Regulatory information where relevant

The property's location should also be assessed against the proposed statement of purpose and intended resident group.

Finding children's home property in London

London can provide opportunities ranging from large suburban houses to former care properties and specialist residential buildings.

Potential sourcing considerations include:

• Property size

• Garden space

• Parking

• Transport

• Local schools

• Healthcare access

• Local authority requirements

• Neighbourhood characteristics

• Planning history

• Purchase or rental costs

• Refurbishment potential

Outer London locations may offer larger properties and gardens, while inner London can provide strong transport conne