Unite puts up rents as student demand outstrips bed supply

The UK’s largest corporate student landlord is putting up rents as demand for beds is outstripping supply by more than a third. Unite is cocking a snook at falling applications for university places and this year’s hike in fees by increasing rents by around 4% because universities just do not have enough room to house their students. The firm already has 40,000 bed places in 24 university cities and is building another 4000 in London over the next three years. Demand is high, particularly from wealthy foreign students who can afford to pay higher rents for the best accommodation. Unite says 14% of their student renters are from overseas. “"Based on our current reservations for 2012/13, which are in line with the same point in 2011, we remain confident of achieving rental growth of 3-4% for the year," said a statement from Unite Meanwhile, as more university entrants from abroad take up places in London, hundreds of nurses in London have lost their homes or face eviction to make way for students. Guys and St Thomas NHS Foundation Trust in Central London is turfing out 300 nurses from two accommodation blocks. The trust says the blocks will be redeveloped as student housing and new accommodation for the parents of sick children. Rents in the area are an average £1,430 a month for a single bedroom flat - more than most of the nurses take home each month. Other healthcare staff in North London are also facing eviction to make way for redevelopments and student housing. Union UNISON says one nurse has lived in her home for 29 years and pays £460 a month rent. The local NHS trust offered to let her stay providing she paid £1,260 a month rent for her home - which is 3200 more than she earns each month.

Landlord blog

Siobhan Smith

Further reading

Students face higher rents and longer commutes - survey

Ministry of Justice lacks rent rise data from FtT decisions

Demand for PBSA in the UK highlights global supply imbalance