The UK care sector continues to grow — but regulation is tightening.

Local Authorities are facing increasing placement shortages.
Children’s services are under pressure.
Supported Accommodation standards have strengthened.
Commissioners are becoming more selective about who they work with.

At the same time, more professionals, property investors and care managers are asking:

• How do I start a Supported Living business in the UK?

• What is the difference between Supported Accommodation and a Children’s Home?

• Is CQC registration easier than Ofsted?

• What planning permission do I need?

• How much capital do I really need to start?

If you are planning to launch in 2026, this guide will help you understand what must be in place before you invest in property, recruit staff or submit an application.

1. Choose the Right Model Before You Commit

One of the biggest mistakes new providers make is choosing a service model based purely on perceived income potential — without understanding regulatory obligations.

Each model has very different compliance and operational requirements.

Supported Living (CQC Regulated)

Supported Living services are regulated by the Care Quality Commission (CQC) when personal care is delivered. They typically support adults with learning disabilities, autism, mental health needs or physical disabilities.

Key considerations include:

• Registering for the regulated activity of personal care

• Clear separation of housing and care (where applicable)

• Strong governance and safeguarding systems

Supported Accommodation (Ofsted Regulated – 16–17)

Supported Accommodation is regulated by Ofsted under the 2023 Supported Accommodation Regulations.

This model:

• Supports 16–17-year-olds

• Is not classified as a Children’s Home

• Has its own inspection framework

• Requires strong safeguarding and support planning systems

It is important not to confuse this with a Children’s Home registration.

Children’s Homes (Ofsted Registered)

Children’s Homes are fully regulated by Ofsted and usually require C2 planning use.

This model requires:

• A Registered Manager

• A Responsible Individual

• A Statement of Purpose

• A Location Assessment

• A full staffing structure

• Comprehensive safeguarding systems

Compliance expectations are high and inspections are detailed.

Choosing the wrong category can delay or derail your registration entirely.

2. Regulation Is Not Just Paperwork

Whether applying to CQC or Ofsted, regulators assess far more than forms.

They will evaluate:

• Your business plan

• Financial sustainability

• Safeguarding knowledge

• Governance systems

• Staffing structure

• Leadership competence

• Area or location risk assessments

The Fit Person Interview is thorough and competency-based. It tests your understanding of legislation, safeguarding, operational oversight and leadership.

Registration is not a tick-box exercise — it is an assessment of your readiness to run a safe, compliant service.

3. Planning Permission & Property Risks

Property decisions made too early are one of the most expensive mistakes new providers make.

Before signing a lease or purchasing property, you must understand:

• C2 vs C3 planning use

• Whether change of use is required

• Local authority location risk considerations

• Fire safety requirements

• HMO licensing (where applicable)

Signing a 3–5 year lease before confirming planning position can expose you to significant financial risk.

Strategy must come before property.

4. Financial Structure & Start-Up Costs

Starting a Supported Living or Children’s Home business requires more than registration fees.

You must plan for:

• Property costs

• Refurbishment and compliance upgrades

• Staffing (including employer on-costs)

• Training and DBS checks

• Insurance

• Policies and compliance documentation

• Software and management systems

• Working capital for the first 3–6 months

Many providers underestimate the cash flow gap between registration and receiving consistent placements.

Financial forecasting is essential for sustainability.

5. Staffing & Governance Expectations

Regulators expect robust systems from day one.

This includes:

• Safer recruitment processes

• Qualified Registered Manager (Level 5 recommended)

• Clear supervision structure

• Training matrix

• Audit schedule

• Incident reporting systems

• Safeguarding oversight

• Quality assurance framework

Strong governance is what separates sustainable providers from those placed into monitoring or enforcement.

6. Securing Placements After Registration

Registration alone does not guarantee income.

You must understand:

• How Local Authorities commission services

• Framework and tender portals

• Relationship-building with commissioners

• Vacancy tracking systems

• Clear service positioning

• Evidence of safeguarding credibility

Registration is only step one. Strategic positioning is step two.

Common Mistakes That Cost Thousands

We regularly see aspiring providers:

• Lease property before regulatory clarity

• Apply under the wrong registration category

• Underestimate start-up capital

• Fail to prepare properly for the Fit Person Interview

• Launch without structured governance systems

These mistakes can delay launch by months and cost significant capital.

Why Preparation Matters in 2026

The care sector remains high demand — but regulation is becoming more robust.

Inspection frameworks are tighter.
Safeguarding expectations are stronger.
Commissioners are increasingly risk-aware.

Those who prepare properly build sustainable, scalable care businesses.

Those who guess often struggle.

Ready to Build Properly?

If you are planning to start a Supported Living service, Supported Accommodation provision or a Children’s Home in 2026, the most important step is clarity before investment.

That is why we are hosting a live masterclass where we break down:

• The regulatory roadmap

• Planning and property clarity

• Financial foundations

• Staffing structure

• Governance systems

• Common costly mistakes to avoid

Before you invest thousands — get strategic clarity.

👉 Secure your place in our upcoming masterclass here: https://www.carebusinessgrowthhub.co.uk/offers/ZZDpQxyX/checkout?fbclid=IwY2xjawQP3qFleHRuA2FlbQIxMABicmlkETI1QXhScUJIZVA3V0hJbHdac3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHrjEwdhARQkbg7mxfNNPWv7aoikHypjzR37Eryvnv4VkSsKxj4cAiNCIGak6_aem_SFSovLqVBigYna54mt6RIQ

Final Thought

Care businesses change lives.

But they must be built with compliance, structure and long-term sustainability in mind.

If 2026 is your year to launch — build it properly.