“Despite efforts to increase PBSA, large-scale developments alone are unlikely to fill the gap in supply. The complexity of securing new land, coupled with rising costs and regulatory hurdles, means that smaller-scale PBSA projects, as well as traditional HMOs, will also be necessary to meet the growing demand for student housing.”

“To achieve this, developers need providers who have the appetite for funding this niche. For example, at Inspired Lending, we have seen significant demand for short-term finance for the purchase and refurb of or conversion to houses of multiple occupancy (HMOs), which have traditionally been popular with students who don’t want to be in halls of residence. We have funded several of these loans in recent months, with further deals in the current pipeline.”

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