Shawbrook has launched a dedicated Purpose-Built Student Accommodation (PBSA) proposition.
It’s a response to what it says is growing investor demand for specialist finance in the sector.
The bank has already completed a number of PBSA transactions and is now offering dedicated pricing and criteria for experienced landlords operating in the sector.
The launch comes amid continued investor appetite for high-quality student accommodation, driven by local demand, changing student expectations and a need to modernise supply across a number of key UK university cities.
The proposition includes loans from £500,000 to £35m, with rates starting from 5.99%, up to 75% LTV on interest-only facilities and terms of up to 25 years.
Larger transactions above £2.5m will be supported by Shawbrook’s Structured Real Estate team, recognising the more specialist structuring requirements often associated with PBSA developments and investments.
A spokesperson says: “We’ve seen increasing demand from brokers and professional investors financing PBSA assets – particularly where borrowers need a lender that genuinely understands how these deals work.
“Every transaction in this sector is different, and the financing requirements are often more nuanced than in traditional property lending.
“A dedicated proposition means we can give brokers and their clients the certainty and expertise they need from the outset.”
Meanwhile it’s claimed that investment into PBSA increased by 46% over the past 12 months.
Over the past 12 months (Q2 25 – Q1 26), student accommodation investment came to more than £5.6 billion, marking a 45.9% increase compared to the previous three quarters.
Regionally, demand for student accommodation is at its highest in the South East, where 18.9% of units have already found tenants. This is followed by the East of England (16.5%), South West (13.9%), Scotland (12.7%), and London (12.7%).
Demand is at its lowest in Wales (4.3%) and the East Midlands (4.9%), the latter of which has the largest amount of stock, with an estimated 3,326 units currently on the market.
