UK: Unite Students has reported double-digit growth as the UK’s student housing crisis intensifies, with demand significantly exceeding supply.
The FTSE 100 company, a major provider of purpose-built student accommodation (PBSA), recorded earnings of £213.8 million for 2024, an increase of 16 per cent.
Rental income rose by 8.2 per cent, while occupancy remained high at 97.5 per cent, slightly down from last year’s 99.8 per cent but still exceeding the sector average of 94 per cent.
The sustained imbalance between supply and demand continues to drive Unite’s performance. The company attributed its growth to rising international student numbers, up 14 per cent year on year due to a more lenient visa policy, and an 18 per cent increase in university applications from UK-based 18-year-olds.
With more than two-thirds of its accommodation already reserved for the next academic year, Unite expects rental growth of four to five per cent and occupancy levels of 97 to 98 per cent in 2025.
Unite has a committed pipeline of £1.2 billion for traditional student housing developments close to campuses, which is fully funded up to 2028.
Unite Students CEO Joe Lister said: “We continue to deliver growth in our earnings over the year, and our record development pipeline supports this into the medium term. This is underpinned by our strong university relationships, sustainable rental growth, and substantial investment in our portfolio.”
“The outlook for 2025 is encouraging, with growing momentum driven by increasing demand and a more supportive policy environment for international students. Additionally, private HMO landlords continue to leave the sector, creating a shortage of student housing. We are well-positioned to respond, with a robust development pipeline and new university joint-venture partnerships. This not only provides students with high-quality homes but also frees up family housing in local communities,” he added.
