Adapting to VAT changes: What next for independent school properties
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Real Estate Partner, Sophie Henwood comments in Education Property Magazine on the challenges facing independent schools considering closure or diversification following the VAT changes.
Sophie notes that schools must carefully assess their property arrangements, particularly whether they own their sites. Some will be subject to lease restrictions that limit use to educational purposes or require landlord consent for a change of use. In some cases, landlords may require a significant premium, meaning that the greatest opportunities are likely to arise for schools that own the freehold.
Even freehold owners may face legal and regulatory challenges, including restrictive covenants, planning requirements, listed building and conservation area consents, historic overage provisions, and evolving energy efficiency standards. In addition, the cost of finance and construction remains high, so ultimately an investor or developer has to ask: does it all stack up?
Sophie explains that while school sites can present opportunities for developers, investors and SEND (special educational needs and disabilities) school operators, there is no one-size-fits-all solution. The suitability of a site will depend on its individual features, the consent requirements involved, and whether the proposed use is financially feasible. She concludes that every property requires a bespoke approach tailored to its characteristics and the uses it is best suited to.
The full article was published by Education Property Magazine in June 2026.
