This value of construction starts is up 78% from the same period in 2023, and now accounts for 8% of all housing starts.

According to Glenigan, a “series of positive fundamentals” are driving activity in the sector.

Here, the data provider pointed to the strength of the UK’s higher education sector, a housing shortage and high demand for university places.

Changing demographics have also been cited for driving PBSA demand. According to Glenigan, there will be a 16% growth in the number of 18-year-olds in the UK by 2030.

•   The Finance Professional Show 2023: The Video
•   Fusion and Cheyne Capital acquire Brent Cross PBSA site
•   Unite expecting 7% rental growth for 2024/25

The update pointed to positive recent activity from several PBSA providers.

This included Unite Group raising £450m from shareholders to invest in additional space, with the FTSE 100 companies pipeline swelling to £1.5bn.

Construction and conversion opportunities are happening in numerous UK cities with high student populations, such as Newcastle, Liverpool, Cardiff and Bristol.

In terms of conversion construction opportunities, Glenigan flagged a £80m scheme in Manchester and a £500,000 project in Bournemouth. Both will utilise pre-existing assets.