The changes will also oblige homes to carry out a risk assessment of their local area alongside police and the local authority to make sure children are safe from sexual exploitation, gangs and other threats.
Children’s homes could be closed down or refused registration if their local area poses too many risks.
The reforms will also require decisions on placing children in care far from their home to be made by a senior official.
The measures are a response to the Office of the Children's Commissioner's inquiry into child sexual exploitation in gangs and groups, which followed the sentencing last May of nine men who groomed and abused young girls in Rochdale.
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