The bank has already completed a number of PBSA transactions and is now offering dedicated pricing and criteria for experienced landlords operating in the sector.
The proposition includes loans from £500,000 to £35m, with rates starting from 5.99% and going up to 75% loan to value (LTV) on interest-only facilities, with terms of up to 25 years.
Larger transactions above £2.5m will be supported by Shawbrook’s structured real estate team, recognising the more specialist structuring requirements often associated with PBSA developments and investments.
The launch comes amid continued investor appetite for high-quality student accommodation, driven by local demand, changing student expectations and a need to modernise supply across a number of key UK university cities.
In Q1, investment in the PBSA market reached £2.1bn, according to Knight Frank, marking the strongest start to the year for a decade, with overall capital investment driven up by a handful of high-value deals.
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
Daryl Norkett (pictured), director of real estate proposition at Shawbrook, said: “We’ve seen increasing demand from brokers and professional investors financing PBSA assets – particularly where borrowers need a lender that genuinely understands how these deals work. Every transaction in this sector is different, and the financing requirements are often more nuanced than in traditional property lending. A dedicated proposition means we can give brokers and their clients the certainty and expertise they need from the outset.”
