How to Find a Property for a Care Home - A Practical Guide for Care Operators

How to find a property for a care home - what care operators should look for when sourcing a suitable building, including location, layout, planning, CQC requirements, refurbishment and lease considerations.

Finding the right property is one of the most important steps when establishing or expanding a care home. A building may look suitable on paper because it has several bedrooms and generous living space, but that does not necessarily mean it will work as a compliant and commercially viable care home.

Care operators need to consider the intended resident group, number of beds, property layout, accessibility, fire safety, planning position, building condition, location and the requirements of the proposed care service.

Fraser Bond helps care operators and property owners assess specialist property opportunities, coordinate refurbishment and building works, and explore appropriate lease or property arrangements.

Decide What Type of Care Home You Need

Before searching for a property, establish what type of care home you intend to operate.

The requirements for a residential care home can differ significantly from those of a nursing home or a specialist service for people with particular needs.

You should consider:

• Intended resident group

• Number of residents

• Number of bedrooms required

• Whether nursing care will be provided

• Level of accessibility required

• Staffing requirements

• Communal space

• Outdoor space

• Specialist equipment

• Location requirements

• Budget for acquisition or rent

• Refurbishment budget

This helps prevent operators from spending time viewing properties that are fundamentally unsuitable for the intended service.

What Properties Can Be Suitable for a Care Home?

Potential care home properties can include:

• Large detached houses

• Former care homes

• Former nursing homes

• Guest houses

• Hotels

• Purpose-built care facilities

• Large residential properties

• Buildings suitable for conversion

• Existing specialist accommodation

However, previous use should not be treated as an automatic guarantee of suitability.

A former care home may still require refurbishment, planning checks, building work or regulatory assessment before a new operator can use it.

Similarly, a large house may have excellent potential but require significant alterations before it can operate as a care home.

Look for the Right Number and Arrangement of Bedrooms

The number of bedrooms is an obvious consideration, but the layout can be just as important.

A property with eight bedrooms is not necessarily better than a property with six bedrooms if the six-bedroom property has a much more practical layout.

Consider:

• Bedroom sizes

• Position of bedrooms

• Number of bathrooms

• Distance to bathrooms

• Communal areas

• Staff areas

• Storage

• Kitchen facilities

• Circulation space

• Fire escape arrangements

• Accessibility

The proposed number of residents also needs to be realistic for the building.

CQC places importance on premises being suitable for their intended purpose, including having an appropriate layout and enough space for the people using the service. It also considers facilities such as toilets, bathrooms and storage.

Choose the Location Carefully

Location can make a significant difference to the suitability of a care home property.

Depending on the service, operators may want convenient access to:

• Hospitals

• GP surgeries

• Pharmacies

• Public transport

• Shops

• Parks

• Community facilities

• Local amenities

• Family networks

• Emergency services

CQC guidance states that premises should be appropriately located for the service and that providers should consider the needs of people using the service, access to local facilities, public transport and parking.

For example, a care operator looking for a property in London may compare a large house in North London with another property in South London. Although both buildings may have similar bedroom numbers, their accessibility, transport links, local services and surrounding environment could make one substantially more suitable.

Check Planning Before Committing

Planning should be investigated early in the property search.

A building currently used as a private dwelling may not automatically be suitable for use as a care home. Depending on the proposed use and circumstances, planning permission or other planning consideration may be required.

Care operators should therefore establish:

• Existing planning use

• Planning history

• Proposed care use

• Number of residents

• Any planning conditions

• Parking implications

• Access requirements

• Potential neighbouring impacts

• Whether alterations require permission

CQC's registration guidance also expects providers to have appropriate evidence concerning planning and building regulations when establishing a care service.

It is generally better to investigate planning before committing significant funds to a property.

Consider CQC Requirements

A care home is not simply a residential property with several occupants.

Where accommodation and nursing or personal care are provided together as a single package, the service falls within the CQC's regulated activity covering accommodation for people who require nursing or personal care.

This means operators need to consider the property alongside their proposed care service.

The CQC expects care premises to be clean, secure, suitable for their intended purpose, properly maintained and appropriately located.

Operators should therefore assess a potential property with registration and service delivery requirements in mind from the beginning.

Assess Fire Safety and Building Condition

A property that looks attractive during a viewing can still require substantial investment.

Before agreeing a purchase or lease, consider commissioning appropriate surveys and assessments covering areas such as:

• Fire safety

• Electrical systems

• Gas and heating

• Plumbing

• Roof

• Windows

• Damp

• Structural condition

• Accessibility

• Security

• Emergency lighting

• Escape routes

CQC expects care providers to assess environmental risks and ensure premises are suitable and safe for residents, staff and visitors.

Understanding the condition of the building early can prevent unexpected refurbishment costs later.

Think About Accessibility

Accessibility requirements should be considered before choosing a property.

Depending on the intended residents, the building may need:

• Step-free entrances

• Accessible bedrooms

• Adapted bathrooms

• Wider doors

• Handrails

• Ramps

• Suitable circulation space

• Lifting equipment

• Improved access to outdoor areas

A property with stairs between essential facilities may be difficult to adapt economically.

In contrast, a building with a relatively straightforward layout and good access may offer greater potential even if it initially requires refurbishment.

Calculate the Refurbishment Budget

The purchase price or rent is only part of the property cost.

A care operator should estimate potential expenditure on:

• Fire safety upgrades

• Bathrooms

• Kitchens

• Electrical works

• Heating

• Accessibility

• Decoration

• Flooring

• Security

• Emergency lighting

• Internal alterations

• External works

• Furniture and equipment

For example, a large property in West London might appear competitively priced compared with an existing care facility. However, if it requires extensive fire safety and accessibility works, the total project cost could be considerably higher.

A proper refurbishment assessment should therefore be completed before the operator commits to the property.

Buy or Lease a Care Home Property?

Care operators can consider either purchasing a property or leasing one, depending on their business model and available capital.

Buying

Buying can provide greater control over the property and may make sense for operators planning a long-term strategy.

However, it requires substantial capital and leaves the operator responsible for the property as well as the care business.

Leasing

Leasing can reduce the upfront property capital requirement and allow an operator to focus more of its resources on the care operation.

However, the lease needs careful review.

Important terms include:

• Lease length

• Rent

• Rent reviews

• Repairs

• Maintenance

• Insurance

• Alterations

• Permitted use

• Assignment

• Break clauses

• Reinstatement obligations

A long lease can be attractive, but the operator should understand its obligations throughout the term.

Find Properties Through Specialist Property Channels

Care operators can search for suitable properties through several routes.

These can include:

• Specialist property consultants

• Commercial property agents

• Healthcare property advisers

• Local property networks

• Direct approaches to landlords

• Existing care property owners

• Property developers

• Auction opportunities

• Former care homes

• Property management companies

Working with someone familiar with specialist property can help narrow the search to buildings that have a realistic chance of meeting the operator's requirements.

Rather than simply searching for "large houses for rent", an operator can specify the characteristics required for the intended care service.

What Should You Tell a Property Agent?

A clear property brief can make the search much more efficient.

The brief could include:

• Preferred location

• Maximum travel distance

• Minimum number of bedrooms

• Minimum number of bathrooms

• Required floor area

• Desired outdoor space

• Parking requirements

• Accessibility requirements

• Maximum rent

• Purchase budget

• Refurbishment budget

• Preferred lease length

• Intended resident group

• Required planning position

• Target opening date

For example, instead of telling an agent that you need "a large house", a care operator could specify that they are seeking a six-to-eight-bedroom property in North London with parking, communal space, several bathrooms and potential for accessibility improvements.

That gives the agent a much clearer search brief.

Carry Out Due Diligence Before Signing

Once a potential property has been identified, the operator should investigate it thoroughly.

Check:

1. Planning position

2. Building condition

3. Fire safety

4. Accessibility

5. Lease or purchase terms

6. Local services

7. Parking and access

8. Refurbishment requirements

9. Potential resident capacity

10. Regulatory requirements

11. Landlord obligations

12. Total project cost

CQC also requires providers to demonstrate that premises and equipment are suitable, maintained and appropriately located for the service they intend to provide.

The aim is to understand the complete project rather than simply finding a property that looks suitable during a viewing.

A Practical London Example

Suppose a care operator wants to open a small residential care home in London.

The operator is looking for:

• Six to eight bedrooms

• At least three bathrooms

• Communal living and dining areas

• A suitable kitchen

• Garden space

• Parking

• Good public transport

• Access to healthcare

• Potential for accessibility improvements

A large house in North London comes onto the market.

The property appears suitable, but the operator discovers that only two bathrooms currently serve the proposed number of residents and that the upper floors have limited accessibility.

Instead of immediately rejecting the property, the operator obtains professional advice on whether the required alterations are practical and affordable.

If the works are feasible and the planning and regulatory position can be resolved, the property could still become a viable care home opportunity.

How Fraser Bond Can Help Find a Care Home Property

Fraser Bond works with property owners, investors and specialist operators looking at healthcare and care-related property opportunities.

Depending on the project, Fraser Bond can help operators assess property requirements, identify potentially suitable properties, negotiate property arrangements, coordinate refurbishment and building works, manage contractors and provide ongoing property support.

Finding a care home property should not simply be about finding the biggest building within budget.

The right property needs to work for the intended residents, care model, staff, planning requirements and long-term business plan.

If you are looking for a property for a care home, Fraser Bond can help define the property requirements and explore suitable opportunities across London and the wider UK.