The UK’s largest student accommodation provider is expecting to boost rental growth over the next academic year amid “strong demand” and a shortage of supply, it said.
In a fourth-quarter trading update, Bristol-headquartered Unite Group said it had sold 66% of beds so far for 2025-2026 with occupancy estimated to be between 97% and 98%. Rental growth for the academic year is expected to be between 4% and 5%.
Unite said the outlook for student numbers was “encouraging” with domestic demand underpinned by a 2% larger population of UK 18-year-olds. It added there were also improving trends in international demand.
Joe Lister, Unite Students chief executive, said: “We have seen a strong start to the 2025-26 sales cycle, highlighting the continued demand for our high-quality accommodation from both students and universities.”
Mr Lister said Unite had made “good progress” with the delivery of its development pipeline and had acquired eight investment properties, with value-add potential, in recent weeks.
“These transactions grow our presence in some of the UK’s leading university cities where demand for accommodation is strongest,” he added.
Unite has now deployed around 50% of the proceeds from its July 2024 equity raise. In November, the company acquired the freehold interest of a 260-bed property in London for £37m which the group had previously sold and leased back from the freeholder. The property was acquired at below-replacement cost, Unite said, and has value-add investment potential upon expiry of a nomination agreement in 2026.
A planning application for Unite’s Newcastle University joint venture was submitted in the summer and is expected to go to committee early this year. The organisation is also in discussions over a second university joint venture, which it said would be announced within the next three to six months.
The company has maintained its previous profit guidance for adjusted earnings per share at the upper end of the 45.5-46.5p range.
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