Properties for Care Operators UK - How to Find and Assess Suitable Premises

Explore properties for care operators across the UK, including care homes, nursing facilities, specialist care premises and supported living bases, with practical guidance on CQC, planning, leases and refurbishment from Fraser Bond.

Finding suitable properties for care operators requires more than identifying a large building with enough bedrooms.

Care operators need premises that work for their intended service, the people receiving care, staff, regulators and the commercial requirements of the business. Location, planning use, accessibility, layout, fire safety, refurbishment costs, lease terms and operational requirements can all influence whether a property is suitable.

In England, providers carrying out regulated activities must register with the Care Quality Commission. CQC's registration process considers the proposed service, provider, staffing arrangements and the size, layout and design of the premises. Providers must have their locations and staff ready before submitting an application.

For landlords and investors, this creates a specialist property market involving existing care facilities, former care homes, purpose-built accommodation and buildings with potential for conversion.

What Are Properties for Care Operators?

Properties for care operators are buildings that are suitable or potentially suitable for use by businesses providing care, healthcare or specialist accommodation services.

Depending on the operator and service model, opportunities can include:

• Residential care homes

• Nursing homes

• Specialist care homes

• Supported living properties

• Extra care accommodation

• Healthcare facilities

• Rehabilitation premises

• Treatment facilities

• Former care homes

• Large residential properties

• Purpose-built care facilities

• Commercial buildings suitable for conversion

The right property depends on the type of care being provided.

A residential care operator may require accommodation where residents live and receive care, while a domiciliary care provider may primarily need a suitable office or management base from which regulated activities are organised. CQC's location guidance distinguishes between locations where care is delivered and premises from which regulated activities are organised or managed.

What Makes a Property Suitable for a Care Operator?

There is no single property specification that applies to every care business.

Operators should assess the building against their proposed service and the needs of the people who will use it.

Important considerations include:

• Location

• Planning use

• Property size

• Internal layout

• Bedroom configuration

• Bathroom provision

• Accessibility

• Communal areas

• Staff facilities

• Storage

• Fire safety

• Parking

• Outdoor space

• Security

• Heating and ventilation

• Building condition

• Refurbishment potential

CQC states that the size, layout and design of premises form part of its assessment of services.

This means property selection should be considered alongside the operator's care model rather than treated as a separate property decision.

Care Homes for Care Operators

Care homes are one of the main categories of specialist property sought by care operators.

A suitable care home may include:

• Multiple bedrooms

• Communal lounges

• Dining areas

• Kitchens

• Accessible bathrooms

• Staff offices

• Storage

• Gardens

• Parking

• Lifts

• Specialist equipment areas

The property's layout should reflect the needs of the intended residents.

A care home for older people may require different features from a specialist service for younger adults, people with learning disabilities or other groups with specific support needs.

CQC identifies locations where regulated activities are carried out or managed, with care homes among the examples covered by its location guidance.

Former Care Homes Can Create Property Opportunities

Former care homes are often considered by operators because the buildings may already have infrastructure associated with care provision.

Potential advantages can include:

• Existing bedrooms

• Communal areas

• Accessible bathrooms

• Staff facilities

• Commercial kitchens

• Parking

• Gardens

• Fire safety installations

• Lifts

However, previous care use does not automatically mean that a new operator can start providing care from the property.

The operator should investigate:

• Previous CQC registration

• Previous regulated activities

• Inspection history

• Planning history

• Building condition

• Fire safety

• Accessibility

• Building regulations

• Required refurbishment

• Reasons for closure

CQC's public data includes information on active and inactive providers and locations, registration dates, regulated activities, service types, specialisms and previous providers, which can assist with researching a property's care history.

Supported Living Properties Need Careful Structuring

Properties for supported living operators require particular attention because the accommodation and regulated care service may operate differently from a traditional care home.

CQC's location guidance states that for services such as supported living, extra care housing and domiciliary care, the relevant CQC location can be the premises from which the provider organises or manages regulated activities delivered in people's homes.

Operators should therefore establish:

• Who provides the accommodation

• Who provides the care

• Where care is managed

• Whether accommodation and care agreements are separate

• Which regulated activities apply

• Which premises need to be included in the registration

This distinction can affect the property strategy and the type of premises required.

Nursing Home Properties

Nursing operators may require more specialised premises than standard residential care providers.

Potential requirements can include:

• Accessible bedrooms

• Specialist bathrooms

• Clinical areas

• Medication storage

• Nursing stations

• Hoist access

• Equipment storage

• Infection-control facilities

• Staff areas

• Emergency access

The precise requirements depend on the proposed service and regulated activities.

Operators should assess the property against the actual service they intend to provide rather than assuming that a building marketed as a nursing home automatically meets their requirements.

Specialist Care Properties

Some care operators require properties designed or adapted for particular groups.

These can include services supporting:

• People with learning disabilities

• Autistic people

• Older people

• People with physical disabilities

• People requiring specialist nursing

• People requiring rehabilitation

• Other adults with specialist care needs

The property's environment can be particularly important in these settings.

CQC advises providers planning services for autistic people and people with learning disabilities to consider the relevant guidance when developing their service.

Operators should therefore assess not only whether the property has sufficient space but whether its design is appropriate for the intended residents.

Location Matters for Care Operators

A property can be physically suitable but commercially unsuitable if it is located in an area that does not support the operator's business model.

Before committing to a property, investigate:

• Local demand

• Population demographics

• Existing care provision

• Local competition

• Nearby healthcare services

• Transport links

• Staff accessibility

• Parking

• Local amenities

• Local authority commissioning

• Rental or acquisition costs

London, Birmingham, Manchester, Liverpool, Leeds and other major UK cities can present different property opportunities and operating conditions from smaller towns and suburban locations.

The local market should therefore be assessed alongside the building itself.

Planning Use Should Be Checked

Planning is separate from CQC registration.

A property may have been used as a care home previously, but the proposed new service should still be assessed against the property's current lawful planning use.

Operators should investigate:

• Existing use

• Previous planning permissions

• Planning conditions

• Proposed use

• Change-of-use requirements

• Extensions

• Parking requirements

• External alterations

• Accessibility works

• Local planning policies

Planning permission does not automatically provide CQC registration, and CQC registration does not replace planning requirements.

Where the proposed use is uncertain, specialist planning advice should be obtained before purchasing or leasing the property.

Buying Properties for Care Operators

Some care operators choose to purchase their premises rather than rent them.

Buying can provide greater control over:

• Building alterations

• Refurbishment

• Long-term occupation

• Property management

• Future disposal

• Asset ownership

It can also allow an operator to build a property asset alongside its care business.

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

The acquisition should therefore consider both the operational business and the underlying property.

Leasing Properties for Care Operators

Leasing can provide another route into specialist care property.

An operator may be able to establish a service without committing the capital required to purchase the building.

Capital can instead potentially be allocated towards:

• Staffing

• Equipment

• Training

• Refurbishment

• Working capital

• Service development

However, the lease needs to be appropriate for the intended care operation.

Important terms include:

• Rent

• Lease length

• Rent reviews

• Break clauses

• Deposit

• Service charges

• Repairs

• Insurance

• Alteration rights

• Assignment

• Subletting

• Reinstatement

A specialist solicitor should review the lease before it is signed.

What Care Operators Should Check During a Property Viewing

A standard property viewing is rarely enough for a specialist care property.

The operator should assess how the building will function on a day-to-day basis.

Bedrooms

Check:

• Number of rooms

• Room sizes

• Accessibility

• Privacy

• Natural light

• Emergency access

• Potential for adaptation

Bathrooms

Assess:

• Number of bathrooms

• Accessible facilities

• Wet-room potential

• Space for equipment

• Hot water capacity

Communal Areas

Consider whether there is enough space for:

• Dining

• Lounges

• Activities

• Visitors

• Quiet areas

• Resident interaction

Staff Areas

Look for appropriate space for:

• Administration

• Staff breaks

• Meetings

• Training

• Records

• Storage

The precise requirements depend on the service model.

Accessibility Can Affect Property Suitability

Accessibility should be considered before agreeing a purchase or lease.

Potential problems can include:

• Steps at entrances

• Narrow doorways

• Stairs

• Uneven floors

• Inaccessible bathrooms

• Restricted circulation

• Poor garden access

• Inadequate parking

Some issues may be addressed through refurbishment, while others may require significant structural changes.

A professional survey can help operators understand these issues before committing to a property.

Fire Safety Should Be Considered Early

Fire safety is particularly important in residential care environments.

Operators should assess:

• Fire alarms

• Fire doors

• Escape routes

• Emergency lighting

• Compartmentation

• Evacuation arrangements

• Staircases

• Fire risk assessment requirements

• Emergency service access

Where substantial improvements are required, the operator should establish the likely cost and timescale before agreeing the property's commercial terms.

Refurbishment of Care Operator Property

Some properties can become more suitable for care use through refurbishment.

Potential works include:

• Bedroom upgrades

• Bathroom conversions

• Kitchen refurbishment

• Fire safety improvements

• Electrical upgrades

• Plumbing

• Heating

• Flooring

• Decoration

• Accessibility adaptations

• Roof repairs

• External works

• Security upgrades

• Garden improvements

The cost of these works should be assessed alongside the property's purchase price or rent.

Fraser Bond can assist with refurbishment planning, building works, contractor coordination, repairs and ongoing maintenance.

Building Regulations and CQC Applications

Building work can have implications for a provider's CQC application.

CQC currently requires a building control final certificate with new provider applications where the proposed locations require building regulations approval. CQC states that it cannot register a provider where required building regulations approval has not been completed.

This is particularly relevant where a property has undergone:

• Extensions

• Structural alterations

• Conversion works

• Major refurbishment

• Accessibility works

• Fire safety improvements

• New bathrooms or other significant building work

Building regulations approval is separate from planning permission, so both issues should be checked where applicable.

Legal Occupancy and Lease Restrictions

A care operator needs appropriate legal rights to use the premises for the proposed service.

For leased properties, the operator should check whether the agreement permits:

• The proposed care use

• Resident occupation where applicable

• Building alterations

• Accessibility adaptations

• Fire safety works

• Equipment installation

• Signage

• Assignment

• Subletting

CQC may require evidence relating to legal occupancy as part of a provider application, making the relationship between the property owner and operator particularly important.

What Landlords Should Know About Care Operators

Landlords with properties suitable for care operators should understand what prospective tenants are likely to investigate.

Important areas include:

• Planning status

• Property condition

• Accessibility

• Fire safety

• Existing care use

• Refurbishment requirements

• Lease length

• Rent

• Repair obligations

• Tenant covenant

• Alteration rights

Providing clear information about the property's history and condition can make the due diligence process more straightforward.

Fraser Bond can assist landlords with property lettings, management, refurbishment, repairs and wider property support.

What Investors Should Consider

Investors considering properties for care operators should assess more than the potential rental income.

Relevant factors can include:

• Operator strength

• Tenant covenant

• Lease length

• Rent

• Rent reviews

• Property condition

• Planning use

• Local demand

• Re-letting prospects

• Repair obligatio