Together has found that demand for purpose-built student accommodation (PBSA) is causing a resurgence in the commercial property sector.
Having grappled with inflationary pressures, a ‘punitive tax regime’ and new development regulations, commercial real estate is ‘turning a corner’, data from Together shows. The company said its average customer commercial loan size in the year to date was £252,707.
More than 80% of property professionals, investors and developers surveyed said they believed investing in PBSA over the next five years represented a ‘good opportunity’.
Around 18% of those surveyed said they expected to boost their revenue from PBSA investments by between 11% and 20% in five years. One in ten said churning money into PBSA would help them boost their revenue by between 31% and 40% within the next five years.
‘At a time when universities are struggling to manage and government funding has been frozen, the private sector is being increasingly relied on to meet the shortfall.
‘Even with a recent dip in student dorm reservations, demand is still high for student accommodation, particularly purpose-built student accommodation.’
Cities in focus 2025: Commercial property insights report, Together
Together examined the example of the PBSA market in Manchester. They found the average monthly private rent currently stands at £1,310, having risen significantly in the last decade or so. Demand for houses in multiple occupation and co-living spaces was also helping buoy the sector..
‘With currently 2.5 students per bed, demand for the vital rental accommodation is set to see further opportunity-seeking investors get involved in the sector.’
Research, Together
Together’s research was conducted by Censuswide, which carried out a survey of 500 commercial property investors, developers and property professionals in April 2025.
