Opening a Children’s Home & the Importance of Consultancy
Whilst incredibly rewarding, setting up a children’s home can be a time consuming and costly endeavour. Therefore, we strongly advise getting expert advice right from the outset to ensure the process is as smooth as possible. The Children’s Home Association (CHA) is an excellent starting point for anyone looking to learn more about the process, but if you are seeking support that is more hands-on, then Changing Outcomes are here to help.
Who can open a children's home
Anyone can apply. An individual, a partnership, a company, a charity — Ofsted assesses fitness, financial standing and the suitability of the people running the home, not the legal form. You do not need to have worked in residential childcare yourself.
Do not underestimate the two posts that carry the accountability. Every home needs a registered manager, and an organisation running a home must also nominate a responsible individual. They are two distinct posts, and we advise that different people hold them. If you are a first-time provider with no sector background, the sensible move is to bring in people with managerial experience in children’s homes. Neither post is a formality, and Ofsted treats a weak appointment as a reason to look harder at everything else.
Do you need experience or qualifications?
Two separate questions, and the answers differ.
As the provider you need no childcare qualification and no residential experience. You need capital, a suitable building, and people who know what they are doing. Your manager needs both: relevant residential childcare experience, and normally a Level 5 Diploma in Leadership for Health and Social Care (Children and Young People’s Residential Management), or to be actively working towards it. Your responsible individual needs seniority and real authority in the organisation — ideally with a managerial background rooted in children’s homes.
Ofsted interviews the manager and assesses the responsible individual separately. Appointments are the part of an application most likely to be scrutinised, and the part providers most often get wrong by appointing whoever was available.
How Do You Set Up a Children’s Home?
Due to the high levels of Regulation and the vast amount of inter-agency work needed to open up a children’s home, careful project management is required to avoid unnecessary delays and mitigate risk. An informal discussion is always advised in the first instance, but our founder Andrew Roberts has produced this step-by-step guide to opening up a children’s home.
Why applications fail
Ofsted refuses applications for a small number of recurring reasons, and almost none of them are about the building. The pattern we see is documentation copied from another home or lifted from a template, so the statement of purpose describes a service nobody is actually running. A cash flow forecast that does not survive a slow first year. A manager appointed on availability rather than competence. Planning permission not secured, or secured with conditions that can’t be met. Tenure too short to give children any security. Policies written but not properly implemented — inspectors notice when staff cannot describe a procedure that exists on paper.
Each of these is straightforward to fix before submission and painful to fix afterwards. The 28 days you get to make written representations is not a comfortable window in which to rebuild an application.
Planning use class: C2 vs C3
A children’s home, including one for up to six children, is usually treated as Use Class C2 rather than C3. In most cases that means obtaining planning permission for a change of use, or a certificate of lawfulness, before the home can legally operate. Overlooking it while buying the property is a costly mistake.
Do not exchange contracts until the use class is settled in writing. A building that looks like a family home is not automatically one in planning terms. Some authorities will accept a certificate of lawfulness instead of a full application; others insist on the full route and consult the neighbours. Either way it takes weeks. Run it alongside the location risk assessment rather than after it, and get written confirmation of the use class from the planning authority before you commit to anything. This is step 3 above, and it is the step that ends the most projects.
How long it takes
Realistic, and assuming you are organised. It is not a short process and pretending otherwise helps nobody.
| Stage | Typical duration |
|---|---|
| Local authority demand check | 1–2 weeks |
| Property search, viewing and offer | 2–6 months |
| Planning application or certificate of lawfulness | 8–12 weeks |
| Company registration, GOV.UK One Login, documents drafted | 4–8 weeks |
| Manager and responsible individual recruited, checks completed | 4–10 weeks |
| SC1 and SC2 completion | 1–2 weeks |
| Application submitted and fee paid | 1 week |
| Ofsted assessment and registration visit | 6 months or more |
| Registration decision | 1–4 weeks |
Most of these run at the same time. Planning sits alongside the location risk assessment, recruitment runs alongside the document writing, and SC1 and SC2 are drafted while staff are being recruited. From first enquiry to a registration decision, plan for nine to eighteen months, and longer if you do not yet have a property. The property will be sitting idle for much of that — budget for it, and do not start a lease before planning is settled.
What Ofsted looks for at the registration visit
The visit is not an audit of paperwork in isolation. It is a test of whether the home could take a child on Monday.
Inspectors will want to see a building that is child-friendly and furnished appropriately rather than a building site; staff in post who can describe the home’s ethos and models of care without reading them from a document; a manager who can talk credibly and passionately about the children you expect to be caring for; and evidence that the home’s statement of purpose and policies have been embedded, not merely written. They may speak to staff without you in the room, so you need to have done what you set out to do.
The question to hold onto through the whole waiting period is the one at step 9: would we be ready to accept our first child tomorrow?
What does Ofsted registration cost?
Ofsted charges a registration fee per application. For homes of four or more places there are two fees: one for the registered provider and one for the registered manager. Both are payable at submission.
| Type of provision | Provider fee | Manager fee | Total to budget |
|---|---|---|---|
| Children’s home, 3 or fewer places | £2,006 | Not applicable | £2,006 |
| Children’s home, 4 or more places | £3,284 | £910 | £4,194 |
| Multi-building children’s home | £4,780 | £910 | £5,690 |
| Supported accommodation, 0–9 premises | £4,320 | £910 | £5,230 |
| Supported accommodation, 10+ premises | £5,520 | £910 | £6,430 |
Source: Registration fees for children’s social care services, Ofsted, in force from 1 April 2026. Fees are revised each April. Last checked: 1 November 2026.
These are registration fees only. Ofsted also charges separate annual fees and where applicable, variation fees, but those come later.
How Can Changing Outcomes Help You?
We offer a viability assessment to all new clients wanting to set up a children’s home. It’s done over the course of two days, as there is lots of information to take in and potential Q&A’s. One of the days will be spent at the property hoping to register as a children’s home, so we can go through the functionality of the rooms and what work may need completing.
If you do not yet have a property, we will utilise this time to provide you with a vivid description of what to look for. The remaining time is spent going through what it takes to get you operational. This includes all aspects required by Ofsted to open up a children’s home including:
Your registration as a company, all relevant application forms, the statement of purpose, planning permission, the location risk assessment, and insurance.
Post the viability assessment, you will be provided with an individually tailored cash flow forecast, health and safety checklist, and a business plan template. Along with your detailed assessment and roadmap, we guarantee that you will be far more knowledgeable and confident about setting up a children’s home than when you started.
Take guidance from our experienced team by contacting us today.
Who this service is for
This is for you if you are a first-time provider with limited sector background; a small group opening a second or third home; a director appointing a responsible individual for the first time; or a manager who has inherited a registration and needs it finished.
If you have not settled on a property or a local authority area, start with the viability assessment above. That two-day piece of work tells you whether the project is feasible and whether the building and the area are suitable, before you spend anything else.
The work runs in two parts, and they are separate. The viability assessment comes first. If it stacks up, the document set and recruitment support come afterwards as their own piece of work — the statement of purpose, children’s guide, business plan, and policy set, written against the regulations and to your actual service, plus rigorous interviewing and safer recruitment checks for both the manager and responsible individual appointments.
What providers say about opening a home
Six of our 19 five-star reviews.
- ★★★★★
I contacted Changing Outcome from the beginning when I decided to set up a children’s home. I required a lot of support leading up to registration as it was the first time I’d done anything like this. The team has a very good level of experience when it comes to something like this and the level of hands on support I received was exceptional. Andrew was very approachable and did a thorough property assessment. The wider team was very much involved and helped with all the necessary documents, planning and business statements. The team was also very good at providing guidance on timeline and forecast which I think was super helpful to manage expectations. Even after registration the team is so good at providing ongoing support and I feel they genuinely want you to succeed. Would recommend to anyone who is looking into opening up a children’s home.
- ★★★★★
I have worked with Andy from changing outcomes for setting up a children’s care home. His advice has always been brilliant, he is always friendly and approachable and really knows his stuff! I feel that I have great value for the service he has provided and he explains the information in a way that is clear and easy to understand. I have also had a couple of location risk assessments, which when compared with others I have compared with in the industry is very thorough!
- ★★★★★
Andy and his team over at Changing Outcomes have been massive support throughout our journey to register our children's home. Right from the start Andy has supported us assessing the viability of our home, operational start up, documentation readiness for Ofsted, recruitment and onboarding support of our staff and generally everything in the in between to get us ready for registration. Professional, consistent and efficient. Overall a pleasure to work with.
- ★★★★★
From the very beginning of our journey to open our children’s home, Andy has been nothing short of exceptional. His support has been consistent, reliable, and genuinely invested in our success from day one.
Andy brings not only a wealth of knowledge and expertise, but also a calm, reassuring presence that made even the most complex challenges feel manageable. He has guided us through every stage with patience, professionalism, and a level of care that truly sets him apart.
What stands out most is his unwavering commitment — he didn’t just offer advice, he walked alongside us, ensuring we felt confident and supported every step of the way. His attention to detail, responsiveness, and ability to anticipate needs before they arose made a huge difference in helping us turn our vision into reality.
We are incredibly grateful for everything Andy and his team have done. His contribution has had a lasting impact, and we honestly couldn’t have done this without him. We would highly recommend Andy to anyone looking for someone who genuinely cares and goes above and beyond.
- ★★★★★
I cannot recommend Andy and the team at Changing Outcomes highly enough. From the very beginning of our journey into opening a children’s home, Andy provided exceptional support, knowledge, and guidance every step of the way.
Setting up a children’s home and preparing for Ofsted can feel incredibly overwhelming, but Andy made the entire process clear, structured, and achievable. His knowledge of the requirements, regulations, and expectations around getting ready for Ofsted was outstanding. He took the time to explain everything in detail, ensuring we fully understood each stage of the process and what was needed to get our home ready.
What really stood out was how accessible, welcoming, and supportive Andy was throughout. No question ever felt like too much trouble, and he was always there to offer advice, reassurance, and practical solutions when we needed it.
Thanks to Andy and the expertise of the Changing Outcomes team, we are now fully approved by Ofsted and have a successful children’s home up and running. Quite simply, we would not have been able to achieve this without their help.
If you are looking to start a children’s home or need expert guidance through the Ofsted process, I would wholeheartedly recommend Changing Outcomes. Their experience, professionalism, and genuine commitment to helping others succeed make them an invaluable partner in this journey.
- ★★★★★
We spent a lot of time researching consultants in helping us set up our home. After many conversations with Andrew, we decided to go with Changing Outcomes. Even before any payment was made, Andrew was really helpful on the phone answering my questions. Andrew supported us in creating a business plan and financial forecast. He did extensive research in the area we wanted to open a home. He even had a meeting with children’s services in the area we wanted to open a home. Andrew sat with us and explained our business plan and financial forecast at great length. He is always a phone call away for advice and is very honest. With his guidance and support, we have been able to get funding to open our home.
What Registration Documents are Required for the Process?
When opening up a children’s home there are specific documents that need to be submitted to Ofsted for registration. It’s imperative that these relate to your service and that your proposed Registered Manager and Responsible Individual fully believe in them. Ofsted inspectors frequently report that they come across documents that are not personalised to the home and/or where certain practices/procedures have not been implemented. Our experienced team can write these for you. Take a read below to see what we can provide.
- A detailed business plan
- A children’s guide
- A statement of purpose
- A cashflow forecast
- A location risk assessment
- An equalities policy
- A prevention of bullying policy
- Handover checklist to support transition from Ofsted Application to Ofsted Registration
- A behaviour management policy (including restraint)
- Your complaints procedure
- Your missing child policy
- Your safeguarding policy
- Advertising for candidates
- Providing application forms, job descriptions, person specifications, scenario work and interview questions
- Leading the interviews for your Registered Manager and Responsible Individual, and carrying out all safer recruitment checks
We can also review your existing documentation and provide you with feedback. To have an informal discussion about how to complete these registration documents, be sure to contact us today.
Frequently Asked Questions
The questions providers ask us most before they start.
How much does it cost to open a children's home?
Set-up typically runs £150,000–£300,000 depending on the property, the remit of the home and whether refurbishment is needed — and Ofsted will want to see a buffer of at least 10% above your estimate on top of that. Underfunded applications are a cause for concern, so have a plan for injecting further capital. See the registration costs table above.
How much does a children's home earn?
Income from local authority placement fees varies by region, need and occupancy. A four-bed home at full occupancy earns substantially more than the same home at half, and margins tighten quickly on staffing. Model your forecast at around 75% occupancy rather than 100%. Protecting it comes down to delivering high-quality care.
Do I need to own the property?
No. You can lease, but Ofsted will want tenure long enough to give security to the children placed there — in practice, a five to ten year agreement. Have the lease in place before the registration visit, as tenure forms part of the suitability assessment. Where you can, negotiate a break clause tied specifically to registration being refused or significantly delayed; a vague break clause won’t protect you.
Can I be the Registered Manager of my own home?
You can if you meet the requirements: relevant residential childcare experience and normally a Level 5 Diploma in Leadership for Health and Social Care (Children and Young People’s Residential Management) or equivalent. Ofsted assesses the manager’s fitness separately and will interview them, so a weak appointment jeopardises the whole application. Many providers appoint a separate manager and act as Responsible Individual instead.
What's the difference between a Responsible Individual and a Registered Manager?
The Registered Manager runs the home day to day. The Responsible Individual oversees the provider’s management of it, provides strategic governance, and needs real authority in the organisation — ideally as a director. They must be different people, and the Responsible Individual normally line-manages the Registered Manager.
Do I need to be a limited company?
No. Sole trader, partnership, charity and limited company structures are all acceptable. Most providers incorporate, because limited liability matters once you’re employing staff and holding a lease. If you do, you’ll need to register with Companies House.
How long does Ofsted registration take?
Plan for six months or more from submission, and longer if the application is incomplete or you hit difficulties. Ofsted says applications are now prioritised, so a robust submission that meets local sufficiency is the main variable you control. Expect the property to be sitting idle for much of that.
What happens if Ofsted refuses my application?
Ofsted issues a notice of proposal to refuse and you have 28 days to make written representations before a decision is reached. Refusals usually focus on documentation, viability or the suitability of the manager rather than the building. See our page on Ofsted refusals and compliance notices.
Can I take referrals before I'm registered?
No. You can market the home and talk to commissioning teams, but no placement can start until registration is granted. Most providers use the waiting period to build those relationships and learn how different commissioning routes work, so referrals land quickly once registration comes through.
Does a house need converting to be a children's home?
Not physically, but the planning use class usually changes. A home for up to six children is generally C2 rather than C3, so you’ll need planning permission or a certificate of lawfulness — see step 3 above. Skipping or delaying this is one of the costliest mistakes providers make — and one of the most common.
What insurance do I need?
At minimum, buildings and contents, employers’ liability, public liability and professional indemnity. You want a policy that recognises residential childcare rather than a standard domestic one. Check the wording actually covers your number of children and the activities you’ll run.
Get in touch!
If you want to work with children’s home consultants who go the extra mile to ensure a high standard of care, get in touch with us today.
