Optimising the school estate

Warneford Consulting, cost and estate management specialists, share some key considerations to identify opportunities to generate additional revenue streams.

Read time: 4 mins  Added: 01/07/25

In the current climate, all schools are facing considerable financial pressures - from sustained funding cuts, rising maintenance and staffing costs to higher energy bills. At the same time, schools are working towards net-zero commitments and a decarbonised estate.

This guide highlights five key considerations to help schools explore income generation opportunities. The strength of any proposal depends on the unique features of your assets, how they’re currently used, and demand within your local community.

1. Better utilising your existing estate

The most cost-effective and immediate way to generate income is by maximising use of your existing facilities. Identify demand within the local area and engage with interested groups.

Examples:

  • Renting space to sports clubs or performing arts groups.
  • Hosting weddings, car boot sales, or community events.

2. Improving the estate to attract inward investing

Schools with underused or poorly maintained facilities should consider re-purposing or upgrading them to attract investment. Funding may come from school reserves or reinvested savings.

Examples:

  • Upgrading spaces for business use (e.g. installing IT, projectors, sound systems) to host training or away days.
  • Resurfacing sports facilities to boost rental potential.
  • Partnering with commercial nurseries willing to fund refurbishments in exchange for lower rent, securing income with no upfront cost.

3. Developing new, purpose-built assets

Where demand supports it, schools may be eligible for expansion funding or explore innovative financing options to build new facilities.

Examples:

  • Increased pupil numbers: If over-subscription can be demonstrated, schools may access Condition Improvement Fund support.
  • Section 106 planning gain: Developer contributions may be allocated for school facility development.
  • Operating leases: For facilities like MUGAs or 3G pitches, schools can lease assets and sublet usage to cover costs.

4. Raising funds via disposal of land and assets

If a school has surplus land or buildings (beyond Sport England’s requirements) and secures approval, they may be able to dispose of these assets. Capital receipts can then be reinvested in the school estate to improve infrastructure or support expansion.

5. Unlocking savings and income through environmental solutions

Investing in environmental technologies offers a dual benefit: reducing operating costs and supporting sustainability goals. Many options are available via managed service models or leases, avoiding upfront investment.

Examples:

  • Solar PV systems: Generate electricity, reduce energy bills, and sell excess energy to the grid via the Smart Export Guarantee. Schools can also trade carbon credits. Installing solar canopies over car parks offers additional revenue.
  • LED lighting upgrades: Replace outdated lighting to cut energy use and improve the learning environment. LED systems often pay back from day one and are available with no upfront cost.
  • Boiler optimisers: Dynamic burner management units can improve boiler efficiency by up to 31%, with payback often in under a year. Leasing options are available for instant benefits.

Income generation from outdoor facilities

By making full use of every external space available, there are a number of ways that schools can generate additional income. When school facilities are not in use, e.g. early mornings, evenings, weekends and out of term time, these spaces can be rented out or even franchised to a wide range of users all year long.

A good example of this is performance arts. Schools with performing arts facilities, such as a drama room or main-hall stage, can attract rental income from drama clubs. Some national franchises such as Stage Coach UK, actively seek school facilities to host their weekend classes and summer clubs. Indoor and outdoor sports facilities can also be made available for summer and winter sports clubs. Revenue generated can be reinvested in improvement projects as well as helping to offset any initial investment.

This diagram is an example of where external areas can be optimised to produce additional revenue.

This diagram is an example of where external areas can be optimised to produce additional revenue.

  • 1. Squash courts could be used for clubs or a potential franchise opportunity.

    2. Tennis Courts could be used for clubs or a potential franchise opportunity.

    3. Netball Courts could be hired out for competitions and community use.

    4. 3G Pitches/MUGA’s could be used for local sports clubs or community use.

    5. Gymnasium could be used for private personal training or weightlifting sessions.

    6. Playing fields can be rented out to local community for rugby, cricket, hockey, athletics or American football.

    7. EV chargers can earn income from public use outside school hours and support your staff in switching to electric vehicles.

    8. Excess electricity and carbon generated from solar panels can be sold back to the grid and the carbon market.

    9. Raising funds for reinvestment via disposal of land and assets.

    10. Mothballed facilities can be leased to partners, shifting maintenance costs and bringing in some rental income.

    11. Swimming pool could be rented to local schools via local authorities, for swimming clubs or community uses.

Income generation from indoor facilities

Each Academy has a large amount of indoor space that is often not in use outside school hours. Through creative use of space it is possible to unlock revenue from your assets without causing any disruption to the running of the school. With careful planning events, conferences, evening classes etc. can take place out of hours, at weekends or in school holidays to make sure that you are optimising any potential revenue that your estate is able to generate.

This diagram is an example of where internal areas can be optimised to produce additional revenue.

This diagram is an example of where internal areas can be optimised to produce additional revenue.

  • 1. Nursery provision – Improve an existing facility or rent the premises to an external partner who would invest in the space, provide an income and attract future pupils to the school costs, providing a reduced rental income.

    2. Sports Hall to be used for clubs such as netball, badminton and keep fit classes.

    3. Auditorium could be hired out to local businesses for conferences and events.

    4. Investigate land sales and rental opportunities via both Located and direct negotiation with the local authority and the DfE.

    5. Main Hall could be hired out to dance groups, or for weddings, birthdays and other ceremonial uses or alternatively as a polling station.

    6. Canteen can be used for breakfast and after school clubs.

    7. Use of both internal and external facilities in school holidays such as summer camp, drama club, athletics club or English Language School.

    8. Catering facilities that could be scaled up to produce food for other schools.

    9. The upgrade of lights to LED to reduce operating costs and improve internal environment to improve rental ability.

    10. Drama studio could be used for performing arts, martial arts, music recitals and concerts.

    11. Mothballed facilities such as former sports halls, classrooms can be let to external partners who would take over the facility, and with it the maintenance costs, and provide a reduced rental income.

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