Property pitfalls

The team at Law-Call, a 24-hour legal helpline available to Alliance members, highlights the critical steps a setting should take when choosing a business premises

Finding the right space for an early years setting is one of the most important decisions a provider can make. A building that looks ideal on the surface must be able to secure official registration, comply with local planning rules and keep young children safe from day one.

Whether you plan to convert a commercial building, expand an existing provision or share a space in a local community hub, reviewing structural, contractual and safety requirements helps ensure your property is fully prepared to welcome families without facing any unexpected delays.

Before a new setting in England can open its doors, Ofsted will consider whether the premises meets registration requirements. The property must support compliance with the Early Years Foundation Stage (EYFS), including safeguarding and welfare requirements. It must also provide appropriate space, suitable facilities, safe equipment and a layout that supports effective supervision and protects the health and wellbeing of every child on site.

Before committing to a premises, providers must check whether planning permission for a change of use is required. If the current use does not legally cover early education, securing a formal change of use is an immediate priority.

Local councils typically judge these applications based on traffic impact, parking facilities, drop-off safety and the suitability of outdoor play areas. Predicted noise levels will also dictate whether approval is granted, along with opening hours, neighbour impact and whether any building works are needed.

Contracts should not be completed until any planning risk are fully resolved and break clauses are negotiated.

Typical commercial property contracts are rarely designed with early education in mind and must be reviewed with regulatory approval, safe operation and parent confidence in mind. You should:

• ensure the agreement permits early years provision and wraparound care, covering outdoor play, kitchen and administrative spaces

• consider making completion conditional upon obtaining planning permission, Ofsted registration or other approvals where possible

• ensure the property agreement allows for necessary modifications, such as upgrading kitchen facilities, altering toilets and securing entrances

• avoid taking on unexpected liability for historic disrepair by requesting a thorough schedule of condition

• negotiate a flexible exit option to protect the business if registration or planning permission is denied, or demand falls short of your projections

• ensure the property agreement accommodates long-term growth, such as plans to restructure, franchise, bring in investment partners or transfer the business

For settings who operate from a shared building, such as a school, community centre or church hall, the agreement functions as a license to operate, rather than a traditional commercial lease.

While this can provide flexibility and requires a lower level of commitment, it can lead to weaker security, less control and fewer rights if access is interrupted or withdrawn. To prevent this, avoid relying on informal arrangements and ensure a formal signed agreement is in place before the setting begins operating.

The licence must clearly define your permitted hours, access to rooms, outdoor areas and welfare facilities and whether you have exclusive priority over shared spaces during the setting’s operational hours.

Safeguarding and operational control are particularly important where a building is shared with other users. The licence must explicitly outline how children will be kept separate from unauthorised persons or unsafe areas. It must also establish clear rules for shared spaces, access control, visitor management, security and maintenance.

Ensure the licence does not allow the premises owner to relocate the setting, vary its hours, enforce temporary closures or terminate the arrangement on short notice. These rights can affect recruitment, family relationships, funded places and continuity of care.

Never commit to a new property without first arranging a comprehensive building inspection. This should assess fire safety, asbestos risk, compliance of heating and ventilation systems, and ensure the building is safe, secure and easily adaptable for children with additional needs.

Insurance should be arranged before the setting opens and should reflect the actual activities carried out at the premises.

Once up and running, the premises must operate in a way that ensures safeguarding and welfare obligations are met. This includes:

• carrying out written risk assessments and keep them under review

• maintaining a written safeguarding policy and ensure employees understand reporting procedures

• ensuring appropriate employee checks, supervision, first aid cover and training are in place

• keeping children away from unsafe areas, hazardous substances, unauthorised visitors and any person who should not have unsupervised contact with them

• putting clear procedures in place for accidents, incidents, medication, illness, complaints and emergency evacuation

Securing the right business premises is central to the long-term success and legality of any early years provision.

The physical property, contract terms, planning permissions and registration requirements should all be reviewed together. An oversight in any one area can delay your opening, increase fit-out costs or prevent your plans completely.

Taking the time to secure trusted legal, planning and regulatory advice before exchanging contracts or starting any building works is the best way to protect your investment and build a safe, inviting space for families.

Due diligence checklist:

Complete these essential checks before signing a property agreement:

✓ Confirm the proposed use is permitted by planning law or identify the application required.

✓ Check that the lease/licence permits early years use and any required alterations.

✓ Where occupation is non-exclusive, confirm the licence clearly covers the rooms, facilities, access times, safeguarding controls and termination rights.

✓ Review fire safety, asbestos, utilities, access, security and outdoor play arrangements.

✓ Assess whether the layout supports safe supervision and age-appropriate provision.

✓ Confirm Ofsted registration requirements and build sufficient time into the opening plan.

✓ Prepare safeguarding, health and safety, complaints, accident, medication and emergency policies.

✓ Arrange insurance and ensure contractors, suppliers and staff are properly documented.

As an Alliance member, you have access to Law-Call's 24-hour legal advice telephone service. You can request Law-call's contact details at: bit.ly/U5-LawCall.