Unite Students, a front-runner in UK student accommodation, has released its latest trading update, highlighting impressive performance in the student housing sector. The update, which includes quarterly property valuations for both the Unite UK Student Accommodation Fund (USAF) and the London Student Accommodation Joint Venture (LSAV), presents a promising picture as of 31 December 2023.

Key aspects of the update reveal that Unite Students has achieved 71% occupancy for the 2024/25 academic year, maintaining its strong demand from the previous year. The company remains optimistic about achieving a rental growth of at least 5% for the upcoming academic year. Additionally, Unite Students is on track to deliver adjusted earnings per share (EPS) at the higher end of the 43-44p range for 2023.

Joe Lister, CEO of Unite Students, attributes the success to the company’s all-inclusive, fixed-price offer, which continues to attract both students and universities. Lister emphasised the company’s commitment to providing quality, affordable accommodation, especially in the face of rising operating costs and the declining availability of high-quality student housing.

The current trading performance indicates a robust demand for the Group’s accommodation, with a notable increase in reservations from university partners. Despite the cost-of-living pressures, Unite Students focuses on delivering value-for-money accommodation while ensuring sustainable rental growth.

On the property front, Unite Students is progressing well with several development schemes in key UK cities, aiming to deliver around 2,000 beds between 2024 and 2026. The Group is also actively pursuing additional development opportunities and expects to enhance its portfolio in the first half of 2024.

The report also covers the Group’s efforts in building safety, including the completion of cladding remediation works on multiple buildings. The financial aspect of these efforts is carefully managed, with a significant portion of the remediation costs expected to be recovered through claims.

Regarding fund valuations as of 31 December 2023, USAF’s portfolio showed a 2.1% increase, while LSAV experienced a slight decline of 0.7%. These figures reflect the dynamic nature of the property market, particularly in London, which has a substantial impact on LSAV’s performance.

Unite Students continues to establish itself as a key player in the UK student accommodation sector, providing homes to 70,000 students across the nation. The company’s focus on sustainability, quality, and affordability positions it well for continued success and growth in this vital sector of the real estate market.