Student HMO finance vs PBSA finance

Generally no. PBSA is purpose-built student accommodation, run by a specialist operator and usually planned and regulated as student accommodation in its own right, not as a house in multiple occupation. A student HMO is a shared house let room by room, typically a converted residential property that needs an HMO licence.

Most larger shared student houses need an HMO licence from the local authority, and some areas operate additional or selective licensing. You should also check for an Article 4 direction, which removes permitted-development rights and means planning permission is needed to create a new HMO.

Yes. Student HMOs are financed with HMO commercial mortgages or specialist HMO buy-to-let mortgages, typically up to 70 to 75 percent of value, sometimes with a refurbishment or bridging element where the property is being converted to HMO standard.

Student HMOs typically show higher headline yields and a lower entry cost than PBSA, reflecting the more intensive management and the local rather than institutional market. PBSA yields are keener: Knight Frank put prime direct-let PBSA net initial yields at around 4.75 percent in London and about 5.50 to 5.75 percent in the regions in Q2 2026, reflecting institutional demand and secure income.

It depends on your capital, appetite for management and strategy. Student HMOs suit private landlords seeking higher yields and a lower entry cost; PBSA suits developers, operators and institutional investors seeking scale, liquidity and durable covenant income. We arrange finance across both.