Sanctuary, which manages more than 10,000 student homes nationally, has confirmed it is still exploring a sale of the bulk of that portfolio, despite reports last summer that a deal had been agreed.
In its audited accounts for the year to 31 March, the 125,000-home landlord said: "We continued to take a strategic, long-term view of our asset portfolio to ensure it supports our core social purpose.
"As part of this, we are actively pursuing the sale of some of our student portfolio."
Reports last year suggested that Sanctuary had struck a £400m agreement with global investor GSA for the assets.
Looking for a student buyer
The published accounts, however, stop short of confirming any such deal, stating only that the group is still exploring options for most of its student stock – thought to be around 5,600 beds.
The housing provider also reveals that its student housing revenue increased by £9.3m and occupancy levels across its student accommodation improved over the year.
This helped boost a wider rise in group revenue, alongside gains in social housing rents and care income.
Elsewhere in the portfolio, Sanctuary is also in discussions to sell its interest in 2,000 shared ownership properties.
It says this will "unlock and recycle capital for new investment in our existing homes and services across the organisation."
Return to profit
Sanctuary reports an overall surplus of £61.3m for the year, which is a marked turnaround from the £29.7m deficit recorded in 2024/25.
That's when property revaluations and a development write-down had pushed the group into the red.
However, the group’s turnover rose 3% year on year, from £1.18bn to £1.22bn, with social housing rental income adding £11m to that total. Care income climbed by £21.4m,
Sanctuary is still building
Development activity slowed slightly and the group completed 790 new homes in the year, down from 838 the year before.
Though it still has 2,469 homes on site or in the pipeline and a further £126.5m went into improving existing stock.
Sanctuary was named the largest housing association in the UK by turnover in Housing Today's Largest 50 Housing Associations list last year.
Improved student accommodation occupancy
The managing director of Accommodation for Students, Simon Thompson, said: "For student landlords, there are some takeaways from this report.
"The first is that Sanctuary's hesitation over selling its portfolio hints at just how tricky exiting this market has become for major institutional players."
He added: "The improved occupancy figures, however, offer reassurance that demand within purpose-built student accommodation remains robust despite wider sector uncertainty."
