The Competition and Markets Authority (CMA) has revealed it will be looking into Unite Group's £723 million planned acquisition of rival student accommodation provider Empiric.
The CMA points to potential competition concerns in the UK's student lettings market.
Bristol-based Unite, the country's largest provider of purpose-built student accommodation with 68,000 beds across 23 towns and cities, announced the deal in August.
It aims to boost its portfolio by absorbing Empiric's 7,685 bed spaces.
The combined student portfolio, valued at £10.5 billion, will cover 75,000 beds, mainly in cities hosting Russell Group universities.
Unite's chairman, Richard Huntingford, said when the deal was announced that acquiring Empiric and its portfolio would help accelerate the company's growth ambitions and "better serve students" on their academic journey.
CMA invites comments
The CMA has initiated an information-gathering phase, inviting comments from interested parties by 30 September to assess the deal's impact on competition.
Unite, which began as the UK's first purpose-built student accommodation provider 34 years ago, is valued at £723 million.
The student accommodation provider also said in August the tie-up would help its strategy to expand its reach beyond first-year students to include 'returner' undergraduates and postgraduates.
Empiric has also seen growing demand, particularly from Chinese and US students.
Record numbers head to university
Unite also recently reported a record number of British 18-year-olds are heading to university for the 2025/26 academic year, alongside growing interest from non-EU and Chinese students.
The company revealed that 94% of its rooms have already been sold for the upcoming year, up from 90% in mid-August, with a target of at least 97% occupancy.
Sales to international and postgraduate students are expected to continue through this month.
It added that undergraduate acceptances have risen 3% year-on-year, with higher tariff universities, where Unite focuses its portfolio, seeing an 8% increase.
Non-EU international student acceptances have grown by 5%, with a notable 16% surge from China.
Quality student accommodation will be key
Simon Thompson, the managing director of Accommodation for Students, said: "When it was first announced, Unite Group's proposed acquisition of Empiric signalled a transformative shift in the student housing landscape.
"Now the CMA's scrutiny underscores the need for landlords to stay vigilant, as the merger could influence rent prices and availability, particularly in cities with Russell Group universities."
He added: "With Unite reporting a record 94% room occupancy for 2025/26 and a surge in demand from British, Chinese and non-EU students, the sector is experiencing robust growth.
"Landlords with quality student accommodation will know that demand is increasing from both domestic and international students, but this is undoubtedly an evolving landscape where service will be key."
