Unite Group, the UK’s leading provider of student housing, is set to
achieve significant rent increases and high occupancy rates for the 2025/26
academic year, it says.
The company anticipates its purpose-built student accommodation (PBSA) will
be nearly fully booked, with occupancy projected at 97% to 98%.
Despite a slower start to bookings compared to last year – when 84% of its
68,000 beds were sold by this point in 2024 – Unite has already secured 75%
of its beds for the new term beginning in September.
The company says this shift is down to a ‘later leasing cycle’, which it
considers a return to typical patterns after an unusually hectic
post-pandemic period.
Student tenant numbers increasing
The firm’s chief executive, Joe Lister, said: “Student numbers are expected
to increase again for the 2025/26 academic year due to a growing UK
18-year-old population and improving trends in international student
recruitment.
“Reservations have accelerated in recent weeks, in line with our
expectations for a later leasing cycle and are underpinned by nomination
agreements from our university partners.”
He adds: “We also expect an increase in international student recruitment
this year based on growth in undergraduate applications for 2025/26 and
higher issuance of student visas in the year to date.”
Industry observers suggest that the student housing provider’s
rent rises
in recent years may have prompted earlier bookings as students sought to
secure lower rates.
Less urgency to book
However, with expectations of more modest rent increases this year, there
appears to be less urgency among student tenants.
Nevertheless, Unite remains confident in achieving near-full capacity.
The firm is predicting an average rent rise of 4% to 5% for the coming year
– that’s a drop from the 8.2% growth recorded last year.
Outside London, a typical room costs approximately £180 per week, while in
the capital, prices average around £250 per week.
Private student landlords are leaving
Unite’s dominance in the sector has been boosted, it says, by private
student landlords leaving and a record number of domestic students applying
for courses.
Although it rents directly to students, nearly 60% of its rooms are
allocated through partnerships with universities, which then offer them to
their students.
The company is expanding these collaborations and recently entered a joint
venture with Newcastle University to demolish and rebuild the Castle Leazes
halls, with future profits to be shared.
A planning application for this venture is set for review in May, aiming
for the first phase to launch by 2028/29.
Similarly, Unite is in advanced discussions with Manchester Metropolitan
University to develop 2,300 beds at the Cambridge Halls site, with
completion targeted for 2029 and 2030.
Construction is also underway on other projects, including a 934-bed
development at Central Quay in Glasgow, expected to be ready by the 2027/28
academic year.
In London, Unite’s 605-bed project at TP Paddington faces delays after
being referred to the mayor following a local planning rejection in
February, with a decision now expected later this year.
The company is also working with the Building Safety Regulator to ensure
timely approvals for future projects, including developments at Kings Place
and Meridian Square.
Leading PBSA provider
Unite Students houses 68,000 students across 152 properties in 23 prominent
university towns and cities, forging partnerships with more than 60
universities nationwide.
Its accommodation offers premium living spaces, primarily featuring
en-suite study rooms, with rents inclusive of all utilities, insurance,
round-the-clock security and fast Wi-Fi.
Committed to sustainability,
Unite
is aiming to achieve net zero carbon emissions in its operations and
developments by 2030.
Strong student accommodation sector needed
Simon Thompson, the managing director of Accommodation for Students, said:
“Unite’s anticipated 4-5% rent increase and near-full occupancy of 97-98%
for the 2025/26 academic year underscores a market resilient to shifting
booking patterns and boosted by a rising student population.
“Its proactive partnerships with universities, such as the joint ventures
with Newcastle and Manchester Metropolitan, highlight a forward-thinking
approach to addressing accommodation shortages.”
He adds: “However, it is worrying to see that part of Unite’s success is
down to private student landlords leaving – we need a varied and vibrant
student accommodation sector that works for everyone.”
