sol and surf, Nerja is a wonderful village, i know many people there who have moved over with children and its the best thing they have ever done, its definetly not Marbella and is a lot more family orientated.
The job situation here is very difficult so i would advise to make sure you have enough money to start if you have not already found a job there, Nerja is really based on tourism and there are few businesess that are not bars, restaurants or real estate. Make sure you can go back to the UK if things fail.
You may be lucky and i wish you all the best.
Price of property in Nerja is normally really good and you can live in the centre for not a lot.
As far as im aware all of the schools there are Spanish but i guess if you are moving over for the long term that is what you would like.
Some of the best reviewed schools seem to be:
C.P. Maestro J. Herrera & C.P. San Miguel
As for health insurance, if you are only looking at a year for now you will be covered with your Eurpoean Medical card, you can also take out private insurance for about 50€ a month per person with companies like Sanitas, Adeslas, Medifiatc ... etc
Loads of properties for rent long or short term here:
http://casas.trovit.es/index.php/cod.search_homes/type.2/what_d.nerja/orderby.price/city.m%C3%A1laga/#filters/price.100-600/rooms.2-3/
Hope it helps.
Joan