PBSA construction: Rising starts point to new work opportunities

PBSA construction activity accelerates, with rising start values and a strong pipeline of student accommodation projects

According to Glenigan construction data, student accommodation is emerging as one of the more resilient areas of new housing and is creating meaningful opportunities for new construction work.

Despite a mixed outlook for future student numbers, developers and universities are pressing ahead with a strong pipeline of purpose-built student accommodation schemes across major UK cities, supporting growth in PBSA construction activity over the months ahead.

The value of PBSA construction starts rose by 27% to £772 million in the December-February quarter, compared to the period a year earlier. The value of PBSA starts is now higher than in any other social housing sector.

Investors also remain positive on the sector. A recent report from agents Knight Frank showed that investors committed £4.3 billion to the PBSA market in 2025, a 10% rise on the previous year.

In all, it shows that there were some 19,600 new PBSA bedspaces delivered across 64 schemes in 2025, a 20% rise on the previous year but well short of the five-year pre-pandemic annual average of more than 25,000 beds.

Today, the momentum in the sector is being maintained. At the start of this year, there were 50,250 PBSA bedspaces under construction across the UK, with almost two-thirds of all activity focused on London (14,600), Bristol (5,000), Glasgow (4,300), Coventry (3,600), and Manchester (3,500).

It comes as the underlying demand for student accommodation is set to remain strong. For the 2026/27 academic year, UK universities received a record 619,360 applications, up 3% on last year. Applications from international students rose by 5% to 124,830.

Russell Group university schemes

Knight Frank expects that over the year ahead, investors will be most attracted to student accommodation schemes to cater for the top 24 Russell Group universities and typically in ‘manageable’ sizes of 400-500 bedspaces. So-called ‘middle market schemes’, which appeal to both domestic and international students, will also be sought after.

Glenigan’s construction project data highlights numerous student accommodation schemes around the country where work is set to start and which offer potential for new work.

In Birmingham, detailed plans have been submitted, and work is due to start later this year on a £52 million PBSA scheme at Queensgate Square for Riverlow Birmingham. Work on the 21-storey development, together with an 8-storey ‘shoulder building’, is due to run for 18 months (Project ID: 22384141).

In London, Telford Living has recently submitted plans for a £95 million PBSA project on the site of the former London Electricity Board HQ in Bethnal Green, involving 520 student bedspaces along with commercial space. Work on the 11-storey scheme is set to start this autumn and run for 12 months (Project ID: 17036013).

PBSA-led mixed developments

According to Glenigan construction data, PBSA construction schemes are also emerging as a form of tenure within mixed housing developments.

In Southwark, detailed plans have been granted, and tenders returned on the £100 million Loman Street redevelopment (pictured) involving two buildings to provide 9 storeys of PBSA with 600 bedspaces, along with 71 social housing flats and commercial and restaurant space. Work on the scheme is set to start this autumn and run for 38 months (Project ID: 20000516).

Similarly, in Bristol, detailed plans have been granted for a PBSA-led, mixed-use development on the site of a former car park in Rupert Street. It involves some 328 student bedspaces and around 250 conventional flats together with retail and commercial space. Work on the £85.8 million scheme is at the pre-tender stage and is due to start early this summer (Project ID: 22440492).

Meanwhile, in Edinburgh, plans have recently been approved on appeal and work is due to start this autumn on a £45.8 million PBSA project at 117 Pitt Street. J Smart is the developer/builder on the scheme, which involves over 2,500 sq m of space, and where work is set to run for 19 months (Project ID: 20331895).