PMSI Insights: Nurseries
The UK nursery market is facing sustained pressure from cost inflation, workforce constraints and government underfunding. Despite these headwinds, demand remains resilient. PMSI shares its latest insights on the demand outlook and the constraints impacting nursery operators.
Our key insights:
- Cost inflation, staffing shortages and government funding rates below the true cost of delivery continue to pressure margins and constrain capacity
- Demand for nursery places consistently outstrips supply, driven by rising maternal employment, the structural decline of childminders, and recent government funding reforms
- Critical success factors for operators in the nursery sector include location, scale, quality of provision and operational effectiveness