Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Shawbrook Launches Purpose-Built Student Accommodation Loans up to £35m

Shawbrook has launched a dedicated purpose-built student accommodation (PBSA) finance proposition, offering loans from £500,000 to £35 million. The new range is aimed at experienced landlords and responds to increased broker and investor demand for specialist finance in the PBSA sector.

The bank’s PBSA proposition features dedicated pricing and criteria, with rates starting from 5.99% and up to 75% loan to value (LTV) on interest-only facilities. Loan terms are available for up to 25 years. For larger transactions above £2.5 million, Shawbrook’s structured real estate team will provide support, recognising the specialist structuring requirements often associated with PBSA developments and investments.

Shawbrook has already completed several PBSA transactions prior to this launch. The move comes amid continued investor appetite for high-quality student accommodation, driven by local demand, changing student expectations, and the need to modernise supply in key UK university cities.

According to Knight Frank, investment in the PBSA market reached £2.1 billion in the first quarter of the year, marking the strongest start to the year for a decade. This overall capital investment was driven by a handful of high-value deals.

For UK letting agents and inventory clerks, the launch of Shawbrook’s PBSA finance range may signal increased activity and demand in the student accommodation sector, particularly in university cities where modernisation and expansion are priorities.