The UK’s biggest student accommodation provider has reported strong growth over the last year as demand for housing in university cities continues to outpace supply.
Bristol-headquartered Unite Group said it expected 5,000-10,000 beds to be removed from the market each year as older buildings became obsolete, fuelling the issue.
The London-listed business experienced 8.2% rental growth over the 2024-2025 academic year and reported adjusted earnings per share growth of +5% year-on-year to 46.6p.
Unite said the supply of purpose-built accommodation was down 60% on pre-pandemic levels, which had helped its performance.
The company was also boosted by a rise in university applications, particularly from overseas students. It is on track, it said, to deliver rental growth of 4-5% for 2025-2026 academic year and 97-98% occupancy.
Across the group’s entire property portfolio, 70% of rooms are now sold for the current academic year.
Joe Lister, chief executive of Unite Students, said: “The business performed strongly in 2024 and demonstrated resilience in a challenging market. We continue to deliver growth in our earnings over the year and our record development pipeline supports this into the medium term.
“This is underpinned by our strong university relationships, sustainable rental growth and substantial investment in our portfolio.”
Mr Lister said the outlook for 2025 was “encouraging”, driven by increasing demand and “a more supportive policy environment” for international students.
He added: “Additionally, private HMO landlords continue to leave the sector, creating a shortage of student housing. We are well-positioned to respond, with a robust development pipeline and new university joint-venture partnerships.
“This not only provides students with high-quality homes but also frees up family housing in local communities. We are excited by the opportunities that lie ahead for the business.”
Last year, Unite announced its first joint venture with Newcastle University to develop accommodation. The group submitted a joint planning application for the scheme in the autumn but said on Tuesday (February 25) that delays in reaching an agreement with a third party meant it expected to open the first phase of Castle Leazes for the 2028-29 academic year.
The group added that it was in “advanced stages” of agreeing a second university joint venture with Manchester Metropolitan University, which it expects to finalise in the second quarter of 2025.
The partnership will redevelop the university’s existing 770-bed Cambridge Halls accommodation next to its campus in Manchester city centre. If approved, around 2,300 beds will be built on the site for delivery in 2029 and 2030.