Investors deployed £2.1bn into UK purpose‑built student accommodation (PBSA) assets in Q1 2026 – the strongest start to a calendar year for the sector in more than a decade, according to new data from Knight Frank.
Transaction sizes were skewed in the first quarter with five of the 20 deals transacting at values of more than £150m. Unite Group’s acquisition of Empiric Student Property, which was agreed at approximately £720m, was the largest transaction in Q1.
According to Knight Frank’s data, 65% (13 deals) of transactions in the first quarter were operational asset sales and land transactions accounted for 20% of activity (four deals).
Merelina Sykes, joint head of student property at Knight Frank said: “While the opening quarter was capital heavy, it was not deal heavy. A total of 20 transactions completed during the quarter, broadly consistent with long‑term norms, indicating that activity was driven by a number of capital‑intensive transactions rather than a broader expansion in deal flow.”
Katie O’Neill, associate in the global living sectors research team at Knight Frank, added: “The tilt towards a preference by investors for existing assets is expected to continue in 2026, with investor demand concentrated on mid‑market and lower entry pricing points, particularly assets offering embedded rental reversion while retaining alignment with ‘affordable’ market thresholds.”
Sykes said: “Looking ahead, the fundamentals underpinning the UK PBSA sector remain exceptionally strong. As we move through 2026, we expect investment to remain selective but competitive, with well-located, operational assets and scalable platforms commanding the greatest interest as investors prioritise income security and long‑term growth.”
