Can you get funding for student accommodation?

Yes. There is a deep market of banks and specialist lenders that fund student accommodation as an investment, covering development, bridging, stabilisation, acquisition and refinance. We arrange and place that debt; we do not lend ourselves. This is business funding for an asset, not a student maintenance loan.

How much deposit or equity do you need to buy student accommodation?

On a stabilised, income-producing asset, senior lenders typically advance 55 to 65 percent of value, so plan for 35 to 45 percent equity plus fees and acquisition costs. On a development the equity requirement is usually higher because the loan is sized against cost and finished value.

Is buying student accommodation a good investment?

It can be, but the income now does most of the work. CBRE put the UK PBSA total return at 3.4 percent for the year to September 2025: a 5.4 percent income return, with capital values down 2.0 percent. Knight Frank reports rental growth slowing to 2 percent in 2025/26 from a peak of 8.3 percent. Returns depend on the city, the operator and the lease structure, and it is an operating asset with letting and demand risk, not a passive one.

How long does it take to buy and finance student accommodation?

From offer to completion it commonly takes three to six months on a standing asset. The main variables are due diligence on the income and operator, the lender's credit process and the valuation. Developments and conversions take longer because of planning and build timelines.

Is this a student maintenance loan?

No. This is commercial finance to acquire, build, forward-fund, bridge, stabilise or refinance student accommodation as a property investment. It is not a maintenance loan, a tuition fee loan or help paying rent. Those are consumer products from Student Finance England and the other UK student finance bodies.

How to Finance Student Accommodation: Process & Costs

The short answer

To finance the purchase of student accommodation you identify the asset, agree heads of terms, carry out commercial and property due diligence, obtain a specialist valuation that tests occupancy and income, and arrange senior investment debt of typically 55 to 65 percent of value on a standing asset. You contribute the balance as equity plus fees. We structure the deal to match the asset and your plan and test it against the lenders active in the sector. This is finance to buy student accommodation as a property investment, not a student maintenance loan or help paying rent.

At a glance

Typical loan to value55 to 65% on a standing asset
Equity35 to 45% plus fees
Term3 to 10 years (investment loan)
Key measureNet initial yield and interest cover
UK PBSA total return3.4% (CBRE, year to Sep 2025)
Time to completeOften 3 to 6 months

What you are actually buying

The financing process, step by step

Set your strategy and budget. Decide whether you are buying a standing income asset, a development site or a scheme to reposition, and in which city. Agree how much equity you can put in and what you need to borrow.
Find the asset. Specialist advisers and investment agents such as Savills, CBRE, Knight Frank and Allsop market standing PBSA and development sites; operators such as Unite Students and iQ Student Accommodation define the institutional end of the market.
Agree heads of terms. These set price, what is included, any operator or nomination arrangement, and an exclusivity period.
Commission a specialist valuation. A valuer assesses the asset on the income it generates, applying a net initial yield that reflects the city, the operator and the lease structure.
Carry out due diligence. Review occupancy history, the unit mix, rental growth, the operator, any nomination agreement, the lease structure, planning and the building.
Arrange finance. We approach lenders that understand student accommodation, agree indicative terms, then move to a full credit application and a lender valuation.
Exchange and complete. Funds draw down, ownership transfers and the debt completes alongside the purchase.

Income drives the loan

On a standing student asset the loan is sized off the income, not just the value. A lender tests the net rent against an interest cover ratio and lends to the lower of its loan-to-value cap and what the income will service. Strong, stable occupancy is what unlocks the leverage.

How much money you need

Cost	Indicative level
Equity	35 to 45% of value on a standing asset
Lender arrangement fee	About 1 to 2% of the loan
Valuation fee	Specialist asset valuation, paid up front
Legal fees	Both sides, plus property searches
Acquisition costs	Stamp duty land tax, agent and survey fees

Who can buy and finance student accommodation

A borrowing entity that satisfies the lender's covenant and know-your-customer checks
A credible plan to let and run the asset, often through an operator
Evidence of the income, the occupancy history and the demand catchment
For a development, a contractor, a costed scheme and planning in place

Lenders in this market

Arrange this finance Student accommodation development finance The facility that funds a ground-up build, a conversion or a change of use into a purpose-built student accommodation scheme, drawn in stages through construction and repaid on completion, stabilisation or sale.

Written and reviewed by Matt Lenzie Founder & Principal Broker · 25 years in banking · Reviewed June 2026

How to finance the purchase of student accommodation