Unite Students sees robust rent growth and high occupancy levels
The UK's largest student accommodation landlord says a shrinking supply of PRS student properties has helped it deliver an impressive financial performance.
Unite Students, the country's leading provider of purpose-built student accommodation (PBSA), also says it is seeing rising demand for university places.
The company's annual results reveal that rents rose 8.2% for the 2024/25 academic year and it had a 97.5% occupancy rate - outperforming the sector's 94% average.
This follows a 7.4% rent rise and near-full 97.8% occupancy in 2023/24.
HMO landlords continue to leave
Unite's chief executive, Joe Lister, 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."
He added: "The outlook for 2025 is encouraging with growing momentum, driven by increasing demand and a more supportive policy environment for international students.
"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."
Student appetite for higher education
The firm's success has been boosted by long-standing agreements with universities, ensuring stable student demand.
It also says that student appetite for higher education continues to grow, with the UK's 18-year-olds submitting 2% more university applications for the 2025/26 cycle.
International student numbers are also rebounding, supported by a 14% rise in visa approvals over the past year - a shift attributed to a more welcoming government policy landscape.
For 2025/26, Unite has secured bookings for 70% of its beds, slightly down from 79% last year, which it says points to a normalisation in demand patterns.
Supply of new PBSA
University partners remain a cornerstone of Unite's strong performance, accounting for 57% of beds for the upcoming year, matching the previous cycle.
Yet, the supply of new PBSA lags significantly, sitting 60% below pre-pandemic levels.
Unite says that the private student accommodation sector, including houses in multiple occupation (HMOs), continues to dwindle.
This imbalance has heightened pressure on student housing - something which Unite says it is poised to tackle.
Focus on top-tier universities
Unite also reveals that it is sharpening its focus on Britain's top-tier universities, snapping up £281 million in high-value properties while offloading £304 million in assets.
A further £48 million has been channelled into upgrades, yielding a 10% return on investment.
The company's £1,048 million development pipeline, entirely funded and targeting elite Russell Group cities, promises a 6.8% yield.
A pioneering joint venture with Newcastle University marks its first step into such collaborations, with plans for a second already under public consultation.
Over the next four years, these projects are set to boost net operating income by £71 million, cementing its dominance in the market.
Traditional student HMO properties
Simon Thompson, the managing director of Accommodation for Students, said: "Unite Students is experiencing robust growth, driven by increasing student demand and a shrinking supply of traditional student HMO properties.
"While that acknowledgement of a shrinking supply won't come as a surprise to student landlords, Unite have managed rent growth of 8.2% for the 2024/25 academic year."
He added: "Student landlords with quality accommodation are in a growing market with more 18-year-olds applying to university.
"There are also more international students heading to the UK to help fuel that demand - which will, inevitably, lead to higher rents as demand continues to outstrip supply."
