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Future Living 4, Volume 3: PBSA - conviction through the reset

How investor sentiment, selective demand and delivery constraints are shaping the UK purpose-built student accommodation sector (PBSA).

PBSA remains one of the most established parts of the UK Living sector. However, after a period of strong rental growth and heightened investor appetite, the sector is being assessed through a sharper lens. Based on our survey of global institutional investors, this report explores why sentiment towards PBSA has cooled, why capital has not retreated, and what factors are shaping the next phase of the market.

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Download the full report PDF 17.73 MB

Key survey results

50%

of investors currently find PBSA particularly appealing

60%

of investors say PBSA is an easy asset class for securing finance

72%

of investors believe a graduate route visa reduction would decrease investment demand
Key themes
Capital remains active, but more selective

What does softer sentiment tell us about investor appetite for PBSA?

Demand is resilient, but student behaviour is changing

Where is demand strongest, and how are affordability and university quality shaping performance? 

Delivery defines the opportunity

How are costs, planning and regulation changing the way investors assess new PBSA schemes?


  

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Research methodology

Research was conducted by FTI Consulting online from 7 to 14 October 2025, with n=50 global institutional investors invested in UK real estate representing approximately £302 billion in global assets under management. The convention on rounding was followed, so sums may not always add up to 100%. For more information on the research methodology, please contact andrew.davis@fticonsulting.com.

Contact us

Jonathan Long

Jonathan Long

Head of Corporate Real Estate

Jonathan is currently Head of Corporate Real Estate lending responsible for over £1bn of loan assets, and specialises in providing debt finance for PBSA, residential and industrial projects.

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