Watkin Jones Secures £60m Pipeline as Student Accommodation Retrofit Market Gains Momentum

Watkin Jones has secured £60 million of new contracts, strengthening its project pipeline as demand continues to grow for the refurbishment, fire safety remediation and modernisation of purpose-built student accommodation (PBSA) across the UK.

The residential developer and asset manager has signed six new contracts during the second half of its financial year, with five awarded through its specialist Refresh division, which focuses on upgrading existing student accommodation assets through refurbishment, remediation and compliance-led improvement works.

The projects span Birmingham, Edinburgh, Newcastle and Glasgow, covering approximately 1,750 student beds and reflecting increasing investment across the sector to improve the quality, safety and long-term performance of existing accommodation.

Alongside the retrofit programme, Watkin Jones has also partnered with Marick Real Estate to deliver a new Staycity aparthotel development in Oxford city centre, further broadening its activity across the living and hospitality sectors.

The latest contracts underline a growing trend within the PBSA market, where investors are increasingly prioritising the enhancement of existing assets rather than solely pursuing new-build developments. Fire safety improvements, sustainability upgrades, energy efficiency measures and operational enhancements are becoming key drivers of investment as owners seek to extend building lifecycles while meeting evolving regulatory requirements and occupier expectations.

Watkin Jones said the newly secured projects have been agreed at margins consistent with previous guidance, providing greater visibility over future revenues while supporting its strategy to diversify the business beyond traditional development activity.

The company has also taken proactive steps to manage cost pressures by bringing forward procurement of selected subcontract packages and key construction materials, helping to reduce exposure to inflation and supply chain volatility.

Despite the positive momentum, the company acknowledged that wider market conditions remain challenging. Ongoing uncertainty within real estate investment markets and slower transaction activity continue to influence the pace of recovery across the sector.

Chief Executive Alex Pease said: “While market conditions remain challenging and continue to impact the pace of recovery and short-term real estate transaction liquidity, the long-term fundamentals of our end markets remain attractive.

“The signing of six new contracts, with a combined value of £60 million at margins in line with guidance, signals further progress of our strategy to diversify the business, allowing us to strengthen our secured pipeline and enhance future revenue predictability.”

For the construction and property sectors, the latest contract wins highlight the growing importance of retrofit within the UK’s living sector. As rising construction costs continue to affect the viability of some new developments, investment is increasingly being directed towards upgrading existing buildings, improving fire safety compliance, enhancing sustainability credentials and extending the operational life of residential assets.

With demand for high-quality student accommodation remaining resilient in many university cities, refurbishment and asset optimisation are expected to play an increasingly significant role in the evolution of the UK’s PBSA market over the coming years.