Development Finance

Student accommodation development finance is funding designed to support the construction or conversion of properties into student accommodation.

It can be used to fund eligible development costs, from site acquisition through to construction, helping developers take a project from initial purchase through to completion.

We support experienced developers with:

• Loans from £1m to £30m
• Up to 65% LTGDV
• Up to 85% loan to cost
• Cash or equity invested before Shawbrook funding

We’ll also consider your experience, the feasibility of the project and its location. Every development is considered on its own merits.

Specialist development finance can provide funding structured around the needs and timescales of a student accommodation project.

Working with a specialist lender like Shawbrook also means dealing with a team that understands property development and the considerations involved in financing PBSA.

Depending on the project and facility, funding can support eligible acquisition and construction costs, helping developers manage cash flow throughout the development.

Student accommodation development finance can support a range of projects, including new builds, refurbishments, conversions and extensions to existing schemes.

We can also consider mixed-use developments that include student accommodation alongside other uses.

Key considerations include:

• Location: Proximity to universities, transport, amenities and student demand.
• Number of beds: The size of the scheme relative to local demand.
• Rental arrangements: Whether the scheme will use direct lets, nomination agreements or another model.
• Operating costs: Ongoing management and maintenance costs.
• Rental periods: Expected letting periods and their impact on rental income.
• Exit strategy: How the development finance will be repaid, such as through sale or refinancing.

Costs will depend on the facility and individual project, but can include:

• Arrangement fees: A fee for arranging the development finance facility.
• Valuation fees: The cost of obtaining an independent valuation of the property or development.
• Legal fees: Costs associated with the legal work required to put the facility in place.
• Monitoring fees: Fees for monitoring the development and progress of works.
• Interest: The cost of borrowing, based on the agreed terms of the facility.
• Insurance: Appropriate insurance will usually be required throughout the development.

You should also allow for an appropriate contingency within the overall development budget to help manage unexpected costs.

Yes. Depending on the stage of your development, it may be possible to refinance your existing loan.

If your development is nearing completion, refinancing could help you repay your current facility and provide more time to sell or arrange longer-term finance. Our Development Exit Finance could also provide a short-term funding solution to support this transition.

The options available will depend on your development and individual circumstances.