Under the Cat's Eye: A Tale of Morph and Mystery — Gillian Rubinstein

This school is not all that it seems... Jai has a bad feeling about his new boarding school from the moment he arrives. The windows of the old mansion are watchful, like a hundred eyes, and he senses the house is waiting for him. The students and teachers just don't seem normal — they're all very serious and strangely alike, almost robotic. The only two students who are friendly tell him a horrible story: they think the headmaster is a monster, and that he's stealing the souls of the teachers and students. Jai doesn't believe it at first. But when one of his new friends gets converted, Jai knows he's got to unravel the mystery...or he might be next.