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Student accommodation: Managing emerging risks with confidence
23 October 2025
Read time: 5 minutes
By Paul Courtney, Underwriting Leader, Real Estate, UK Specialty, Intact Insurance.
The UK student accommodation market has matured. It is no longer a niche corner of real estate but a recognised asset class, drawing in institutional money and underpinning the infrastructure of many universities. In the final quarter of 2024 alone, investment in purpose-built student accommodation (PBSA) reached almost £575 million bringing the total full-year total to £3.87 billion.
PBSA now carries expectations on two fronts: it has to deliver a high standard of living for students and reliable yields for investors. With that maturity comes a more complex risk landscape.
At Intact Insurance, we approach student accommodation as a sector in its own right. Standard property cover rarely fits the realities faced by operators, landlords, and their brokers. To build meaningful protection, you first need to understand the risks that define it.
Today’s PBSA bears little resemblance to the converted houses and spartan halls of the past. New developments house hundreds of residents, each with their own facilities and shared spaces on top. That scale changes everything. A burst pipe or faulty fire door in one flat can quickly escalate into a major loss across an entire block.
Escape of water is one of the most persistent issues. It remains costly and disruptive, particularly in high-density accommodation. We work with brokers and clients to encourage preventative measures - simple things such as maintenance regimes, as well as technology like smart leak detection.
The regulatory landscape has undergone significant changes since the Grenfell tragedy. Standards around cladding, sprinklers, evacuation planning, and fire doors have all been tightened. When we underwrite, construction quality and management processes are closely scrutinised. Clients who treat compliance as a baseline, rather than a finish line, generally achieve better terms.
Student accommodation is, by nature, transient. Large numbers of residents and visitors create security challenges that cannot be left as afterthoughts. Controlled entry systems, CCTV and a visible staff presence are now core parts of the risk profile. Brokers who raise these questions with clients early help ensure cover reflects how the buildings are actually run.
Investors are under pressure to prove their ESG credentials. Energy-efficient, sustainable buildings do more than satisfy regulation, they reduce long-term operating risk. From our perspective, ESG is not a marketing exercise. Developments that take it seriously are more resilient, and our underwriting reflects that.
Operators in this sector must balance yield, regulation, and student welfare. Insurance can provide a degree of stability, but only if it is shaped to the realities on the ground. That is why the broker’s role is so important. At Intact Insurance, we aim to work alongside brokers: sharing insight, identifying vulnerabilities, and helping clients strengthen their position.
The sector continues to grow, but so will its challenges. Those who combine a deep understanding of student accommodation with access to specialist insurance will be best placed to deliver long-term results.
At Intact Insurance, our commitment is straightforward. We are not here just to provide capacity. We aim to be a reliable, responsive partner grounded in the realities of student accommodation. That principle will remain central as the market develops further.