Ensuring that a nursery has sufficient indoor space is an important consideration when establishing, acquiring or expanding an early years business. The amount of space available can affect the number of children a setting can accommodate, how the premises are used and the future growth of the nursery.
In England, nursery indoor space requirements are set out in the Early Years Foundation Stage (EYFS) statutory framework. Nursery owners and operators must understand the requirements that apply to their setting and ensure that the premises are suitable for the ages and number of children attending.
The suitability of nursery premises can also involve wider legal and commercial considerations. These may include property arrangements, planning requirements, alterations, regulatory compliance and the terms of any lease. Obtaining legal advice at an early stage can help identify potential issues and ensure that appropriate arrangements are in place.
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What Are the Minimum Indoor Space Requirements for Nurseries?
The EYFS statutory framework sets out minimum indoor space requirements for group and school-based early years providers in England where indoor activity forms the main part of the provision or is integral to it.
For children aged under two, the minimum indoor space requirement is 3.5 square metres per child.
For children aged two, the minimum requirement is 2.5 square metres per child.
For children aged three to five years, the minimum requirement is 2.3 square metres per child.
These requirements are based on the usable areas of rooms occupied by children. Areas such as storage spaces, thoroughfares, dedicated staff areas, cloakrooms, utility rooms, kitchens and toilets are not included when calculating the available indoor space.
The framework also distinguishes between these settings and those operating exclusively or almost exclusively outdoors. Nursery owners should therefore ensure that they understand how the requirements apply to their particular setting.
Why Are Nursery Indoor Space Requirements Important?
Indoor space requirements help ensure that early years settings provide an environment suitable for the needs of the children attending.
For nursery owners, the available space can also have significant commercial implications. The size and layout of the premises may affect the number of children the business can accommodate and the income that the nursery is able to generate.
When assessing nursery capacity, owners should consider the ages of the children attending and how the available space is allocated between different rooms. Changes to the age groups accommodated by a nursery may affect the amount of indoor space required.
The EYFS requirements should also be considered alongside staffing ratios and other operational responsibilities. Meeting the minimum indoor space requirements does not necessarily mean that a nursery can accommodate a particular number of children without considering these additional factors.
Careful assessment of the premises can help nursery owners make informed decisions about capacity, financial planning and the future development of the business.
Property Considerations When Establishing or Expanding a Nursery
The suitability of premises should form an important part of the planning process when establishing a new nursery or expanding an existing setting.
Prospective operators should consider whether the property provides sufficient usable indoor space for the proposed number and ages of children. The layout of the building, access arrangements, facilities and any alterations required may also affect whether the premises are suitable for the intended nursery operation.
Where the nursery operates from leasehold premises, the terms of the lease should be reviewed carefully. Restrictions on the use of the property, alterations or other activities may affect the operator’s ability to adapt the premises to meet the needs of the business.
Planning requirements should also be considered. Depending on the circumstances, establishing a nursery or changing the use of an existing property may require further investigation or appropriate permissions.
Owners considering expanding their nursery should assess whether the existing premises can accommodate additional children while continuing to satisfy applicable regulatory requirements.
Identifying these matters before committing to a property or carrying out significant works can help reduce the risk of unexpected costs or delays.
Indoor Space Considerations When Buying a Nursery
Where an existing nursery business is being acquired, the premises and their capacity should form an important part of the buyer’s due diligence.
Prospective purchasers should understand how the nursery’s current capacity has been assessed and whether the available indoor space is suitable for the number and ages of children attending.
The buyer may also wish to consider whether the premises provide opportunities for future growth or whether the existing layout could restrict the expansion of the business.
Property documentation should be reviewed alongside regulatory information and the nursery’s existing operational arrangements. Where the property is leasehold, the buyer should understand the terms of the lease and whether any landlord requirements could affect the proposed acquisition.
Issues identified during due diligence may affect the value of the nursery or require further investigation before the transaction proceeds.
Understanding these matters at an early stage can help buyers assess the business and make informed commercial decisions.
Potential Issues for Nursery Owners
Difficulties can arise where the available indoor space does not support the number or ages of children a nursery intends to accommodate.
Problems may also occur where parts of a property cannot be included in the calculation of usable indoor space. A building’s overall floor area may therefore be different from the area that can be relied upon when assessing the nursery’s capacity.
Where alterations are required, nursery owners may need to consider planning matters, building regulations, landlord consent and the costs associated with adapting the premises.
Owners should also be aware that access to outdoor space does not automatically allow a nursery to increase the number of children it can accommodate beyond the applicable indoor space limits.
For nursery businesses operating across multiple settings, consideration may need to be given to whether each property continues to meet the requirements applicable to its particular operation.
Keeping premises and capacity arrangements under review can help nursery owners identify potential issues before they affect the business.
Why Legal Advice Is Important
Establishing, acquiring or expanding a nursery involves a combination of property, commercial and regulatory considerations.
Legal advice can assist nursery owners with reviewing and negotiating leases, investigating property arrangements and identifying restrictions that may affect the proposed use or development of nursery premises.
Where a nursery business is being acquired or sold, legal advice can also help ensure that property matters and regulatory considerations are addressed as part of the wider transaction.
Appropriate advice may be particularly important where a nursery operator intends to alter existing premises, relocate the business or acquire additional settings.
Obtaining legal advice at an early stage can help owners understand their obligations, identify potential risks and ensure that the legal arrangements supporting the nursery remain appropriate for their commercial objectives.
How We Can Help
Ensuring that nursery premises are suitable for the operation and future development of the business is an important consideration for owners and investors.
Our experienced team provides clear and practical advice to nursery owners, operators and investors. We can assist with nursery acquisitions and disposals, commercial leases, property transactions, commercial agreements and other legal matters affecting early years businesses.
We can also advise on property documentation, landlord consents and the legal considerations arising where nursery premises are being acquired, altered or transferred.
We work closely with our clients and other professionals to protect their interests and help achieve successful commercial outcomes.
How to Get in Contact
If you are establishing, acquiring or expanding a nursery business and require legal advice on property or other commercial matters, contact our experienced team today.
To get in touch, call us on 020 4570 9600 or email hello@birdigroup.com.
We can advise and assist clients throughout England and Wales.
The information in this article is provided for general guidance only and does not constitute legal advice. Laws and regulations may change, so for up-to-date information and advice tailored to your circumstances, please contact our team.