Summary:
- PBSA investment in H1 2025 reached £1.6bn, surpassing the long-term average of £1.1bn, with £830m invested in the UK market during Q2 and £2bn worth of schemes currently on or under offer for H2, indicating strong market momentum.
- UCAS data shows a 1.3% increase in undergraduate applicants for 2025/26, including a 2.2% rise in international students driven by a 9.8% increase in Chinese applicants, yet supply remains constrained with fewer than 60,000 beds under construction across the UK.
- Market challenges include delays from the Building Safety Regulator, planning issues, and high construction costs, shifting investor preference towards standing stock, especially prime assets in Russell Group cities, while debt costs may ease with anticipated rate cuts in H2 2025.
Original article:
https://benews.co.uk/pbsa-investment-activity-above-long-term-average-in-h1-2025/
