May 1 saw the launch of the first Education Property Forum, a one-day event bringing investors, heads of estates, operators, developers, and product and service suppliers together for a day of networking and analysis.

Held at The Belfry in Sutton Coldfield, and co located with the Nursery Management Today Owners’ Club, the forum included an agenda of expert-led sessions covering key topics impacting education estates.

With a particular focus on the nursery sector, the five speaker sessions – chaired by Education Property editor, Jo Makosinski, featured sector-leading commentators, including Courteney Donaldson and Hannah Haines from Christie & Co, Kieren Cole from Knight Frank, and Peter Jackson from Browne Jacobson.

They discussed the current nursery property market, which has become increasingly active following the Government’s expansion of early years funding and the negative impact of VAT and National Insurance changes on smaller operators.

It’s about having awareness and doing your due diligence so you know what you’ve got in terms of the estate and its condition

Haines shared the results of Christie & Co’s research on real estate transactions and developments within the nursery sector.

And she revealed that declining birth rates, an increase in the age of first-time mothers, and families having fewer children meant the number of 0-4 year olds was forecast to decrease by more than 4% by 2028.

Since the COVID pandemic, there has also been increased movement of working-age women out of London and into the South of England.

But, despite this changing picture, the Government’s expansion of early years funding, and its commitment to creating an additional 70,000 nursery places, means the property market is increasingly active, and competitive.

She said: “The value of the nursery property market was £7bn in 2016 and is now £10.5bn and this is driving interest.”

Donaldson added: “Nursery operators are looking much more closely at their estates and it is not uncommon for the bigger groups to sell off underperforming assets. These, for a smaller local operator, may be a better fit.”

And Cole said: “A lot of smaller nursery operators are exiting the market, due to ill health, or a change of direction, and there is scope for others to come in to deliver the necessary increase in capacity.

“People are also looking to sell because of tax and National Insurance increases.”

But all speakers agreed that it was vital for anyone considering selling to make sure their paperwork is up to scratch.

Cole said: “When I am valuing a nursery, I expect to see EPCs and accounts. I want to know why they are selling and when you are appraising a site you will be looking at whether it is being utilised to its full capacity.

“We do notice when an operator has not invested in their buildings.”

Nursery operators are looking much more closely at their estates and it is not uncommon for the bigger groups to sell off underperforming assets. These, for a smaller local operator, may be a better fit

Donaldson added: “Buildings need to be sustainable, and different estates perform in different ways for different operators.

“My advice is to make sure you have audited accounts. To get the best price you need to provide the best information.

“Things like planning are critical as you need to make sure you tick all the boxes, and that includes keeping up with redecoration and maintenance of all buildings.”

In a later session, exploring the early years funding extension in more detail, Jackson said that primary schools looking to launch or expand onsite nurseries would be looking at the existing estate to see if it could be utilised.

“What will influence success is how much space a school has,” he added.

“Where there are falling pupil numbers, there is more competition between schools for pupils and those which have a nursery on site have more chance of getting parents through the door.

“A lot of schools have extra classrooms they are not using and for them the decision will be whether they want to run the nursery themselves or outsource to private providers.

“In the first round of capital funding allocations, 90% of the successful applications were schools which intended to run the nursery themselves.”

The event also featured two expert panels, one looking at best practice in the design of educational buildings, and another exploring the key challenges facing estates managers.

A lot of schools have extra classrooms they are not using and for them the decision will be whether they want to run the nursery themselves or outsource to private providers

On the Architects’ Expert Panel were Catrina Stewart of Office S&M Architects; Chris Bryant of Alma-nac; Christopher Leese of TG Escapes; Oliver Moore from Design Engine Architects; and Tom Woods from Kennedy Woods.

Stewart described the environment as ‘a teacher in its own right’, with architects needing to design spaces that could support learning.

She said: “Flexibility is key and so is involving everyone in the design process from the very beginning – whether that is teachers, parents, cleaners, graphic designers, or estates professionals.”

Bryant added: “Sustainability is crucial, and that’s not just about reducing carbon, but enhancing wellbeing within the built environment.”

In the Heads of Estates panel debate, Mark Kirby, head of construction and facilities at Busy Bees Nurseries; and Stuart Graham, infrastructure director at Storal, provided an overview of the challenges they face.

Legislative demands, in particular, were cited as key, as well as the high cost of the planning process for developing the estate.

Kirby said: “Many estates people are not professionals, particularly in small groups, and there is a cost barrier.

“Planning legislation is a huge issue, particularly for single operators because of the amount of money you need to pay upfront before you can even get to the delivery stage.

“It’s about having awareness and doing your due diligence so you know what you’ve got in terms of the estate and its condition.”

Graham added: “Construction costs more these days and the condition of properties varies considerably.

“Pre-school rooms take a battering and you need a clear approach.”

Alongside the speaker sessions, the forum provided a platform for service and product suppliers and manufacturers to meet with investors, developers, and owners through a series of pre-booked meetings.

Attending the event was Jerry Dunham or Dunhams Washroom Systems.

The company specialises in washroom panelling and cubicles for education settings.

Durham said: “These sort of events are great for us as you are meeting specifiers and architects and you are able to explain your product and why it would be of benefit.

“Having so many meetings in a single day also cuts down on travel. It is a great way to maximise your time.”

Commenting on her speaking session, Haines added: “Data-driven insights are what I breathe day to day in my role, so having the opportunity to share my passions was a joy.”

These sort of events are great for us as you are meeting specifiers and architects and you are able to explain your product and why it would be of benefit

Jackson added: “I was delighted to speak at the very first forum on early years funding changes and the likely impact on the school estate.

“Let’s hope for many more events to come and that the forum can become a voice for the education property sector.”

Event organiser, Nexus Media Group, publisher of Education Property, is planning two more Education Property Forums around the country this year.

The next event will be on 8 October at Savoy Place in London and will be collocated with the Independent School Management (ISM) Forum.

There will be a third event at Celtic Manor in Newport on 5 November.

To find out more about how you can attend, or to express an interest in speaking in one of the sessions, please click on the links above or visit Nexus Media Group.