Unite Students, a leading provider of student accommodation, forecasts a seven per cent rise in rental revenues for the 2024/25 academic year, supported by a robust development pipeline valued at £2.9 billion. The Bristol-based company expects to achieve 98-99 per cent occupancy, reflecting strong demand from both domestic and international students.

With planning approval for a 934-bed development in Glasgow and more projects underway, Unite Students is expanding its portfolio. Chief Executive Joe Lister stated, “Student demand remains strong from both domestic and international students, reflecting the continued appeal of UK Higher Education, our fixed-priced, all-inclusive offer, and the growing shortage of high-quality student homes.”

The company’s alignment with the UK’s top universities supports rental growth and property valuations. Recent planning milestones in Glasgow and Newcastle are set to deliver new student homes in key university cities.

Unite’s portfolio currently has 94 per cent of rooms reserved for the next academic year. Universities have secured 1,000 additional beds via nomination agreements compared to last year. International student demand remains robust, with 18 per cent of the portfolio leased directly to international students. Unite has not seen a significant impact from the removal of visas for family members of international postgraduate students due to the single-occupancy nature of its properties.

Rental growth will be further enhanced by £47 million of asset management initiatives. The Central Quay development in Glasgow has received resolution to grant planning permission, with full consent expected soon, targeting delivery for the 2027/28 academic year. In Newcastle, a joint venture with Newcastle University has received planning consent to demolish existing buildings, with plans to develop 2,000 new beds.

Unite is exploring further development opportunities, university partnerships, and acquisitions in London and other strong regional markets. As of 30 June 2024, Unite Students’ property portfolio, valued at £2.9 billion, saw a 3.2 per cent increase on a like-for-like basis during the quarter, driven by quarterly rental growth of 3.3 per cent. The portfolio includes 25,602 beds across 66 properties in 19 UK university towns and cities. The LSAV property portfolio was valued at £1.9 billion, reflecting a 2.8 per cent increase during the quarter.