Unite Students has posted a boost in the value of its two property portfolios, caused by robust occupancy rates and rising rents. However, the company warned that the incoming Renters’ Rights Bill will increase student living costs.
Unite said the value of its UK-wide portfolio grew by 0.6% to £2.9bn, while its London portfolio grew 0.7% to £2bn. UK-wide rental values increased by 1.3% in the three months to 30 June, the company told markets, while London rents rose 0.6%.
More than four-fifths of beds have now been sold for the 2025/26 academic year, with demand boosted by a 2% growth in applications from UK 18-year-olds and a 29% increase in student visa applications up from the first five months of the year.
Planning has been granted for their 2,000-bedroom Castle Leazes joint venture in Newcastle. Work is underway to secure outstanding approvals and start on-site later this year.
Unite expects a later sales cycle in line with historical trends supported by strong demand from UK students following A-Level results in mid-August and from international students during September.
Following the signing of a framework agreement in May with Manchester Metropolitan University, a joint planning application has been submitted for the development of 2,300 new bedrooms at Cambridge Halls in Manchester city centre.
Unite continues to engage with the Building Safety Regulator (BSR) to progress pre-construction approvals for their upcoming development starts. Applications for four projects are under review by the BSR and continue to experience delays. Unite is working to mitigate this impact to deliver projects in line with their target completion dates.
“Student numbers are expected to increase for the 2025/26 academic year due to a growing UK 18-year-old population and improving trends in international student recruitment.
“Sales momentum has picked up in recent weeks, in-line with our expectations for a later sales cycle, and we continue to target occupancy of at least 97%. Demand for our accommodation remains underpinned by our alignment to the UK’s strongest universities and nomination agreements with our university partners.”
Joe Lister, Chief Executive Officer, Unite Students
Unite UK Student Accommodation Fund (USAF) has refinanced its £395m 2025 bonds through a new £400m eight-year secured loan with Rothesay Life at a cost of 5.6%. The new facility completes refinancing activity in USAF with no maturities due before 2029. The refinancing was incorporated into the company’s guidance for a 4.1% weighted average cost of debt in FY2025.
