UK Student Market Update – Q1 2025 (Edinburgh)

In Q1 2025, UK purpose-built student accommodation (PBSA) investment completed 18 deals worth nearly £750 million, with 56% of transactions involving operational assets and investors increasingly shifting toward mid-market and value-add properties rather than prime assets due to concerns around occupancy, affordability, and international student mobility. The document identifies key sector challenges including supply slowdown caused by higher build costs and regulatory hurdles such as the Building Safety Act and Gateway 2 process, alongside findings that the total PBSA pipeline stands at nearly 200,000 beds with 23% under construction, while operational performance data shows the market returning to normal leasing patterns with expected rental growth of 4–5% nationally for 2025/26.