Special report: Property market predictions for 2025 SEND SCHOOLS

  • 23rd January 2025

In this special report experts from leading UK property consultants reveal their predictions for the SEND school real estate sector in 2025

 

Sector sees significant demand from private sector buyers for suitable properties for expansion

 

COURTENEY DONALSON, managing director of childcare and education at Christie & Co 

The SEND school sector in 2024 was characterised by significant demand from private sector buyers for suitable properties for expansion, ongoing growth in state school-based provision, additional government funding initiatives, and a rising number of pupils requiring special educational support.

As of January 2024, there were over 1.6 million school pupils in England with identified SEND and the number of children and young people with EHC plans increased to 576,000, a rise of 11.4% from 2023.

Additionally, the proportion of pupils receiving SEND support without an EHC plan rose to 13.6% in 2024, up from 13% in 2023.

As the demand for SEND services rises at pace, in 2024 the sector saw significant demand for properties suitable for SEND school provision, with interest from existing operators looking to expand and new entrants aiming to address the growing need for SEND placements and services.

Buyers were particularly interested in vacant former school sites, but also considered former hotels, care homes, and community assets like libraries.

In 2024 the sector saw significant demand for properties suitable for SEND school provision, with interest from existing operators looking to expand and new entrants aiming to address the growing need for SEND placements and services

Heightened public awareness associated with the shortage of SEND services also led to interest from new entrants, innovators, investors, and developers seeking to invest in creating new purpose-designed educational settings in partnership with experienced SEND providers.

As part of its annual sentiment survey, Christie & Co asked childcare and education providers across the country for their views on the year ahead.

When questioned about their sentiment in 2025, 29% said they feel positive and 31% feel negative, while the majority (40%) remain neutral, which illustrates the uncertainty that remains.

When asked about their sale and acquisition plans, 62% stated that they are looking to buy and/or sell this year.

In 2025, Christie & Co expects:

  • Owners exiting the market will achieve premiums, driven by competitive buyer tension
  • Demand for properties with vacant possession will continue to facilitate new capacity creation
  • Local authority budget pressures will increase the focus on providers demonstrating value for money
  • Infrastructure property funds will show additional interest in assets occupied by SEND providers
  • Regulatory scrutiny will intensify

While the market moved forward in 2024, the sector was not immune to challenges, with local authorities continuing to sign up for Safety Valve agreements, and concerns around the sufficiency and allocation of the £1bn uplift in funding for SEND in the Autumn Budget 2024 with advocates calling for more capital to ensure every child can access the education they need.

Despite these headwinds, the sector continues to attract significant interest from established trade buyers, new entrants to the SEND sector, investors, and developers, a trend which is very much expected to continue through 2025 and into the years beyond.

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