QX Student Accommodation Insights Evening 2026: Resilience, Risk and the Real Constraints on Growth

QX’s Student Accommodation Insights Evening in London opened on a reflective note. Chair Philip Hillman paid tribute to Nigel Henry, co-founder and chairman of Fusion, who passed away on 7 February, recognising his lasting contribution to the PBSA sector.

The evening then moved into a keynote from Nick Hillman OBE, Director of the Higher Education Policy Institute (HEPI), followed by a panel discussion featuring Nick Hillman OBE (Director, HEPI), Rachel Miller (Investment Strategy Director, UPP), Brian Welsh (Founder & CEO, OpRe Solutions), Jamie Harris (Co-Managing Partner, Harris Associates) and Zejian Yang (Managing Director, Far East Orchard), with sponsors Prefect Controls and Yardi supporting the event and PBSA News as media partner.

Demand is holding, but affordability is the pressure point

Nick Hillman’s keynote set the tone. He pointed to early UCAS indicators for 2026 entry showing a modest uptick in applications, noting that predictions of long-term decline have repeatedly proven unreliable in recent years. Demand for higher education, he argued, remains structurally resilient.

However, the sharper risk lies elsewhere. Hillman highlighted the widening gap between maintenance support and actual living costs, describing a growing real-terms shortfall and the increasing prevalence of term-time employment among students. The debate about student finance, he suggested, often reflects pressures on take-home pay rather than a fundamental loss of value in higher education itself.

For a PBSA audience, his closing message was direct. The residential university experience remains central to the UK’s higher education model. As affordability pressures grow and commuter patterns shift, the sector will need to articulate that value more clearly.

Capital is present, but increasingly selective

The panel discussion moved quickly to what this means in practice.

On university health, Hillman was candid that conditions vary widely across the sector, referencing recent institutional partnerships as signs of strain in parts of the system while noting that others remain robust. Rachel Miller reinforced that divergence, describing a

“flight to quality” dynamic where stronger institutions and locations continue to perform more confidently.

From an investment perspective, Jamie Harris described a more granular approach to underwriting. Investors are no longer focusing solely on traditional top-tier markets. Instead, they are closely examining booking curves, occupancy patterns and city-level fundamentals. Zejian Yang added an international perspective, noting continued interest from family offices and overseas capital, but emphasising that appetite is opportunity-led and increasingly discerning rather than automatic.

Regulation and development, the real constraints

Regulation also featured in the discussion, particularly in relation to the Renters Rights Act and PBSA’s comparative position. The view expressed was that while PBSA may be relatively insulated, changes elsewhere in the living sectors could alter demand patterns and behaviour in certain markets.

Yet the most sober consensus concerned development viability.

Panellists described a markedly different cost environment from previous cycles, with higher build costs, regulatory obligations and planning requirements tightening margins significantly. London-specific affordable and nomination requirements were discussed as additional constraints, and the Building Safety Act was noted as adding both cost and complexity at early stages of scheme progression.

Affordability expectations from students sit alongside these realities, creating tension between what the market can bear and what schemes can viably deliver.

Disciplined realism

The overall tone of the evening was measured rather than dramatic. Demand signals remain resilient. Capital continues to seek exposure to UK PBSA. The residential model retains long-term strength.

But scrutiny is sharper, margins are tighter, and the path from planning to completion is more complex than it once was.

The message from the room was clear: the sector’s fundamentals remain intact, yet success will depend on disciplined underwriting, clearer communication of value, and an honest recognition of the structural constraints shaping the next phase of growth.