Most notably since mid-2020, there has been a huge surge in the need for SEND provision and, consequently, demand for school places supporting SEND students across the UK.
There are a number of reasons for this: Firstly, we have seen a rise in demand within a very short space of time following the first national lockdown in the UK. But also over the past decade or so there has been a rise in public awareness of SEND and historically perceived stigmas have largely eroded due to far better awareness and understanding.
“There are no signs of this surge in demand for places abating.”
The post-covid surge in demand for SEND provision can be seen through the 9.5 per cent increase in the number of children with an Education, Health and Care plan (EHC) between 2022 and 2023, with 389,171 pupils in England now having an EHC plan in place. A further 1,183,384 pupils receive SEND support without an EHC plan, up 47 per cent from 2022 (Gov.uk).
There are no signs of this surge in demand for places abating and many state schools are not adequately equipped to meet the increased demand or to support pupils with more complex and challenging needs. As a result, we have seen expert providers across the private and charitable school sectors step into the breach.
This has led to an incredibly buoyant market for a variety of different vacant properties that would lend themselves well to SEND use, subject to planning consent, for example, former libraries, offices with outdoor space, hotels, or community buildings.
“We have seen expert providers across the private and charitable school sectors step into the breach.”
In seeking to change the use of a building, the planning process can be lengthy and the cost of converting that property into a school could be very sizeable. For those reasons, in particular, vacant properties that already have an educational use continue to be in the highest demand.
As a case in point, last year, we saw a rise in the number of former independent schools coming to the market, the majority of which were sold in swift and competitive processes to SEND and specialist childcare service providers.
Throughout 2023, demand from buyers for development opportunities, and the opportunity to buy businesses with established earnings continued to outstrip supply and we have already seen this trend continuing in 2024.
What we expect in the market in 2024
- The SEND market will continue to grow, fuelled by demand, but fees and costs are likely to be in sharp focus as budget restraints tighten
- We will continue to see private SEND provision capacity increase as new schools open
- Vacant properties suitable for SEND utilisation will continue to be highly sought-after by buyers
- Owners of high-quality SEND business with established earnings will see heightened interest from prospective buyers keen to acquire businesses at substantial premiums