PBSA yields and total returns
Where UK student accommodation yields sit by market tier, and what the asset class has returned, drawn from the specialist indices.
Prime UK PBSA net initial yields have sat near 4.25% (Knight Frank, 2025), with regional and secondary markets priced higher to reflect covenant and lease-up risk. The UK PBSA index returned about 8% (CBRE, year to Sep 2025).
At a glance
- Prime net initial yield4.25% (Knight Frank, 2025)
- Regional yield5.25% (Knight Frank, 2025)
- Secondary yield6% (Knight Frank, 2025)
- Total return8% (CBRE, year to Sep 2025)
- Annual investment volume£3bn (Knight Frank, 2024)
- As at2025
What yields does UK PBSA trade at?
PBSA net initial yields vary by market tier and covenant. Prime stock in the strongest markets has traded near 4.25%, regional markets around 5.25%, and secondary or operational stock around 6% (Knight Frank, 2025). A nomination agreement with a strong university covenant tends to compress the yield a buyer will accept.
| Market tier | Net initial yield |
|---|---|
| Prime | 4.25% |
| Regional | 5.25% |
| Secondary / operational | 6% |
What has PBSA returned?
The UK PBSA index returned about 8% on an annualised basis (CBRE, year to Sep 2025), combining income with capital growth. Annual investment volume has run at around £3bn (Knight Frank, 2024), a deep and liquid institutional market.
We size investment debt against the income a scheme produces and place it with lenders that price to the right tier. Knowing where prime, regional and secondary yields sit is how we benchmark the leverage a building will support.
Sources: CBRE (UK Purpose-Built Student Accommodation Index (year to September 2025), Sep 2025); Cushman & Wakefield (UK Student Accommodation Report, 2025); Knight Frank (UK Student Housing / Student Accommodation Outlook 2025/26, 2025); Savills (Spotlight: UK Student Housing, 2025); HESA (Higher Education Student Statistics: UK, 2023/24, 2023/24); HEPI / Unipol (Accommodation Costs Survey and Ten Cities Rent Survey, 2024); StuRents (PBSA Recent Growth and Potential Pipeline, 2025).
PBSA yields and total returns: common questions
What yield does UK student accommodation trade at?
Prime PBSA has traded near 4.25%, regional around 5.25% and secondary or operational stock around 6% (Knight Frank, 2025).
How much is invested in UK PBSA each year?
Annual UK PBSA investment volume has run at about £3bn (Knight Frank, 2024), a deep institutional market.
Working on a student accommodation deal?
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