2025 was a year of mobilisation for Fusion and for the UK living sector at large. Across PBSA and multifamily, we saw demand continuing to outpace supply, but delivery was held back by a range of regulatory complexities. The uncertainty around Gateway II and the evolving renters’ rights proposals have been particularly challenging for those of us trying to bring new accommodation to market.

It’s also been a year where international student uptake softened in some areas as new rules came into play. At the same time, persistent build-cost inflation has continued to outstrip rental growth and interest rates have fallen more slowly than many of us anticipated. All of this has kept viability under real pressure, forcing everyone in the sector to think carefully about how we move forward.

And many of these trends have not only persisted but picked up speed as we move into 2026. Throughout 2025, the pace of development in the sector has been shaped by regulatory hurdles and economic headwinds, but the collective response has been to focus on building resilient pipelines and shoring up operational models. Looking ahead, the sector’s ability to deliver on its pipeline will depend on how well we have laid these foundations, and on the strength of the partnerships we have built along the way.

At Fusion, we have focused on strengthening our platform, expanding partnerships, and readying our pipeline for the next phase. This year also saw us relaunch our operating platform, Fusion Students, bringing 2,000 PBSA beds under management, around 1,700 of which we completed ourselves in the past year alone.

The year ahead will see the living sector gain a stronger footing. Demand shows no signs of slowing down in 2026 and will continue to outstrip supply across PBSA and all living sectors, while greater clarity and consistency in planning should help to unlock new development.

For Fusion, 2026 is the year that partnerships translate into action. We have cultivated institutional capital relationships and deep strategic ties with landowners across London, where PBSA can be an early mover and a catalyst for mixed-use placemaking. Our fully integrated platform - development, capital, and operations - allows us to navigate regulatory change, manage cost and operational risk, and convert pipeline into product at an impressive pace. This is how we will help to set the tempo for wider living development across the country.

I’m confident in the direction in which PBSA is travelling. The sector’s fundamentals remain robust, best practices are emerging and the partnership model is proving its worth. If 2025 prepared the ground, then 2026 is all about delivery.