£22.7m secured for new purpose built student accommodation in York

A major new student accommodation development is underway in York after £22.7 million in funding was secured to support its construction.

The site was previously home to an NHS mental health unit, and developers say the building will “set a new benchmark” for sustainable student living.

The funding, provided by Paragon Bank, will support the development of Peppermill Court, a 239-bed purpose-built student accommodation (PBSA) scheme being built on Ramsey Close.

The development has a total value of £34.7 million and is expected to be completed by summer 2027, in time for students moving in for the 2027/28 academic year.

‘A new benchmark for sustainable student living’

Peppermill Court is a new PBSA scheme being developed by Asset Capital, aimed at increasing York’s student housing supply as demand continues to grow.

The accommodation will include

• 227 standard en-suite rooms
• 10 adaptable en-suite rooms
• Two fully accessible en-suite rooms

Asset Capital’s director, Dan Newett, said: “Peppermill Court sets a new benchmark for sustainable student living. Our commitment to environmental standards and modern amenities ensures that future residents will benefit from comfortable, energy-efficient accommodation in a thriving university city.”

Site clearance has already taken place, and construction is now underway.

‘Outstanding environmental credentials’

Sustainability has been positioned as one of the development’s main selling points, with Peppermill Court designed to meet high environmental standards.

Plans for the site include

• Photovoltaic panels on the roofs of both accommodation blocks
• Triple glazing to reduce heat loss
• High levels of insulation to improve energy efficiency

To encourage biodiversity, the site will also include bat and bird boxes, with developers saying the scheme aims to support local wildlife alongside new construction.

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Simon Dekker, senior relationship director at Paragon Bank said: “This project represents an exciting step forward for sustainable student accommodation, combining high-specification facilities with outstanding environmental credentials.”

‘Tailored to the needs of both the developer and the city’s vibrant student community’

According to those behind the project, Peppermill Court is intended to offer modern, purpose-built facilities suited to York’s student population.

The scheme forms part of a wider push towards newer PBSA developments in the city, as demand for student accommodation continues to increase alongside rising student numbers.

The £22.7 million funding package, provided by Paragon Bank’s Development Finance division, was used to refinance Asset Capital’s purchase of the Ramsey Close site, as well as support construction costs.

Those involved in the funding say the project represents a step forward for student accommodation in York, combining sustainability with large-scale PBSA development aimed at the city’s student population.

Simon Dekker added: “Our team’s expertise in the PBSA sector enabled us to structure a funding package tailored to the needs of both the developer and the city’s vibrant student community.”

Featured image via Google Maps