PBSA Development Finance
Specialist funding for Purpose-Built Student Accommodation developments from £1m to £100m+.
We specialise in PBSA development finance, helping developers access the capital they need to build high-quality student housing across the UK.
With 15+ years of experience, we’ll find the right funding solution for your project – whether it’s a 50-bed conversion or a 1,000-bed new build.
Expert finance advice
tailored to you
Quality service
Fast, friendly and professional service.
Lender Choice
Over 250 Banks, Hedge Funds, Family Offices & more.
Experience
Over 15 years of specialist finance broking.
Bespoke Lending
Finance tailored specifically to meet your needs.
Why Invest in Purpose-Built Student Accommodation?
The UK student accommodation market is worth £89 billion and growing fast. *
Here’s why smart developers are focusing on PBSA:
Massive Supply Shortage
The numbers tell a compelling story:
Investment Performance
PBSA delivers strong returns:
7.6% annual gross income growth over three years
Capital values up 6.5% while commercial property fell 18%
Rental yields typically 5-7%
Annual rent resets aligned with academic years
Institutional Confidence
Big money is backing this sector:
£3.87 bn invested in 2024 (14% growth)
£45 bn institutional capital targeting Living Sectors
Student housing ranked second most attractive asset class
* Knight Frank NextGen Living – 2025. Knight Frank estimates the current market values of the PBSA market to be £89 bn, BTR £79 bn, and seniors housing £44 bn.
How PBSA Development Finance Works
The Basics
PBSA development finance is short-term funding designed to cover your project costs from land acquisition through to completion, typically lasting 18-36 months.
What We Can Fund
Land and Construction:
- Land acquisition costs
- Construction and build costs
- Professional fees (architects, engineers, consultants)
Additional Costs:
- Planning and statutory costs
- Finance costs during construction
- Marketing and letting expenses
How Much Can You Borrow?
Most PBSA developments use these key metrics:
Loan to Gross Development Value (LTGDV): Up to 75% of your completed scheme’s value
Loan to Cost (LTC): Up to 90% of total project costs
Your Contribution: Typically 25-30% equity (can include land value)
Available Funding Structures
Senior Debt Your main funding source, secured by first charge over the development. Provides up to 75% LTGDV at competitive rates.
Stretched Senior Debt Enhanced senior funding up to 90% LTV for experienced developers with strong projects.
Mezzanine Finance Additional funding that sits behind senior debt, allowing higher overall borrowing. Typically 10-20% of project value.
Forward Funding Institutional investors commit to purchase your completed development, providing certainty and often improving your funding terms.
Joint Ventures Partner with investors who provide capital in exchange for profit share, reducing your own cash requirement.
Let’s Talk!
Our PBSA Finance Solutions
Loan Amounts: £1m to £100+ million
Loan Terms: 6-36 months
Geographic Coverage: England, Scotland, Wales
Interest Rates: Competitive rates from specialist lenders
Project Types We Fund
Ground-Up Development New build PBSA schemes from 50 to 1,000+ beds. We fund everything from land acquisition through to practical completion.
Conversion Projects Converting offices, commercial buildings, or other properties into student accommodation. Includes planning risk funding.
Refurbishment Finance Light and heavy refurbishment of existing buildings for student use. Terms up to 24 months for renovation projects.
Mixed-Use Developments Schemes combining PBSA with retail, commercial, or other residential elements.
Lending Criteria Overview
| Criteria | Our Terms |
|---|---|
| Loan Amount | £1m – £100+ million |
| Maximum LTGDV | Up to 75% (experienced developers) |
| Maximum LTC | Up to 90% (including rolled interest) |
| Loan Term | 6-36 months |
| Interest Rates | From 8.5% p.a. (risk dependent) |
| Arrangement Fee | Typically 2% of loan amount |
| Borrower Types | Limited companies, LLPs, individuals |
| Experience Required | Property development track record |
What Lenders Look For in PBSA Projects
Location Requirements
University Proximity
Proximity to universities (ideally within 15-minute walk) is essential. Transport links and connectivity matter if you’re further away.
Local Infrastructure
Lenders assess local amenities and student lifestyle facilities. Market analysis showing student demand strengthens your application.
Development Specifications
Modern Student Expectations
Today’s students expect modern facilities including study spaces, gyms, high-speed internet, and social areas.
Accommodation Mix
Mix of studios and cluster accommodation works best. Common areas and technology infrastructure are now standard requirements.
Financial Viability
Realistic Projections
Lenders want realistic build cost estimates with contingencies and market-supported rental assumptions.
Clear Exit Strategy
You need a clear plan for loan repayment – either sale to investors or refinancing to commercial mortgages.
Developer Experience
Track Record Required
You don’t need previous PBSA experience, but lenders want evidence of successful property development. Access to experienced architects, contractors, and consultants strengthen your application significantly.
Financial Strength
Lenders typically want to see ability to fund contingencies beyond the loan amount.
Why Choose Bridging Finance London
Experts in student accommodation finance across all project types and sizes.
Proven Track Record of millions in successful PBSA developments funded.
250+ Lender Relationships including PBSA specialists.
Institutional Access to forward funding opportunities.
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