How to Invest in Purpose-Built Student Accommodation (PBSA)
Purpose-Built Student Accommodation — or PBSA — is rapidly becoming one of the most popular asset classes among property investors seeking reliable, hands-off income. With strong yields, consistent demand, and full management in place, it’s easy to see why PBSA is attracting attention from both UK-based and overseas investors.
What Is PBSA?
PBSA refers to residential developments designed specifically for students. These modern, professionally managed properties often include self-contained studios or en-suite cluster flats, along with on-site amenities like study areas, gyms, and social lounges.
Unlike traditional HMOs, where investors buy existing houses to let to students, PBSA is a completely hands-off investment model. You’re not managing tenants, chasing rent, or dealing with compliance — that’s all taken care of by the management company.
Why Invest in PBSA?
There are several reasons why PBSA stands out as a smart investment:
Strong Rental Demand: With over 2 million students in the UK and international applications and a 10% year-on-year growth according to UCAS, demand for accommodation remains high. Purpose-built accommodation is in high demand, especially in cities with limited university housing.
Attractive Yields: Many PBSA developments offer net yields of 6–8%, often with assured income for the first 1–3 years.
Low Risk, Low Maintenance: With professional management and fixed costs, PBSA suits investors who want passive income without the hassle of being a landlord.
Recession-Resilient Sector: Higher education tends to remain stable during economic downturns, making student housing a relatively defensive asset.
How to Start Investing in PBSA
1. Choose the Right Location
Not all student cities are created equal. Look for areas with:
Large, growing student populations
Limited on-campus accommodation
A strong international intake
Regeneration or infrastructure investment
Cities like Manchester, Sheffield, Nottingham, Birmingham, and Liverpool consistently top the charts for student housing performance.
2. Work with a Trusted Property Consultancy
Accessing high-quality PBSA opportunities typically requires working with a consultancy that specialises in off-plan and purpose-built investment property. At APW Group, we source pre-vetted developments with proven track records and reliable management partners.
3. Understand the Financials
PBSA units are often priced between £70,000 and £120,000, depending on location, spec, and size. These are cash purchases in most cases, although some developments offer staged payment plans.
Make sure to factor in:
Ground rent and service charges
Management fees (usually around 10–15%)
Yield guarantees (verify the terms)
4. Review the Exit Strategy
Although PBSA is a medium- to long-term hold, it’s important to understand your exit options. Some developments offer resale support, and properties in high-demand cities tend to retain value well if marketed correctly.
Is PBSA Right for You?
PBSA is best suited to:
Investors seeking passive income with minimal involvement
Expats or international buyers looking for UK exposure
Buyers interested in secure, fully managed assets with clear returns
If you prefer a more hands-on strategy with the potential for value-add, a traditional HMO might suit you better. But if your priority is hassle-free, predictable income, PBSA offers a compelling case.
Start Your Student Property Journey
At APW Group, we can give you access to pre-vetted developments in high-growth university cities — with expert guidance from sourcing to completion.
Ready to explore accommodations for students? At APW Group, we can give you access to pre-vetted developments in high-growth university cities — with expert guidance from sourcing to completion.
Our team brings over 30 years of experience in property and fixed income investments, guiding you through everything from discovering the perfect property to sourcing lenders.
Looking for your entry point into the student accommodation market? Get in touch today.