Unite Students, in its results for the year to 31 December 2024, has reported that the business has increased its overall turnover by 8% from £276.1m to £299.3m, but warned of building regulations stalling projects.
Its pre-tax profit more than quadrupled from £102.5m to £444m. This was due in large part to a revaluation gain of £239.6m, compared to a loss of £61.2m the previous year. Its operating profit excluding one-off valuation gains increased more marginally from £154.7m to £168.1m.
Unite Students reported rental growth of 8.2% in the year – up from 7.4% the previous year. However, it expects growth to slow to 4% or 5% this year. The group has a pipeline of 7,676 beds located at Russell Group universities.
The business said it is benefiting from house of multiple occupation (HMO) landlords leaving the sector due to increased costs and regulation.
However, they repeated a warning that Building Safety Regulator approval delays of around six months were hampering their plans. Its Freestone Island scheme, which had been due to complete in time for the start of the 2026/2027 academic year, will not now finish until 2027.
Unite said the delays have contributed to its new supply in the year to 31 December being ‘constrained’ at 11,000 beds.
“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.
“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. 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.”
Joe Lister, Chief Executive, Unite Students
