GUIDE
How much does it cost to open a children’s home?
A children’s home is capital-intensive. Realistic startup capital runs from £50,000 to £100,000, and Ofsted expects you to prove you can sustain it. Here are the honest numbers.
Last reviewed: 05 June 2026
The capital you need
Opening a children’s home asks for more capital than almost any other regulated care business. Realistic startup costs run from £50,000 to £100,000, covering the property, furnishing and adapting it, recruitment, and the operating costs before the home is full. On top of that, Ofsted expects you to demonstrate financial sustainability, evidence that you can keep the home running, usually for around six months, regardless of occupancy. This is the single biggest barrier to entry, and it is not negotiable.
Property, setup, recruitment, early running.
Sustainability Ofsted expects.
By bed count, plus a manager fitness fee.
The Ofsted registration fees
Separate from your capital, Ofsted charges a fee to register a children’s home. The application fee depends on the number of beds, roughly £2,006 for a smaller home and more for a larger one, plus a separate fee to assess your registered manager’s fitness, and an ongoing annual fee once you are registered. These figures change, so always confirm the current fees on GOV.UK before budgeting.
Fees correct as of 05 June 2026.
The other costs
An honest cost picture for a serious business
A children’s home is a significant commitment, and the cost picture has to be realistic from the start. We build the entire business and prepare your full registration, and on your free consultation we give you an honest cost picture for your specific plan. See our children’s home startup service.
Related guides
How long does Ofsted registration take?
Realistic timelines for childcare and children’s services.
Read the guide →How to register a children’s home: the SC1 and SC2 forms
The forms and the registration process explained.
Read the guide →