Unite Group reports record demand for beds as student housing crisis grows
Unite Group has today reported a record level of reservations for its student beds as the demand for student accommodation in the UK grows.
The company told the market this morning it had sold 71 per cent of its beds for the 2024/25 academic year up from 70 per cent of beds sold in the same period last year.
Unite also said it’s confident in pushing through rental growth of five per cent across its portfolio in the year.
As a result of this performance, the company said it’s confident it will hit its earnings target of 43p to 44p per share for the year as higher rental income offsets higher costs.
Unite, which already owns and operates 70,000 beds across the UK, said it’s making good progress with four new development schemes in London, Bristol, Edinburgh and Nottingham, totalling 2,000 beds, for delivery between 2024 and 2026.
Boss Joe Lister said: “We have seen a strong start to the 2024/25 sales cycle, reflecting the continued appeal of our fixed-priced, all-inclusive offer. The letting performance highlights the ongoing strength of demand from students and universities and underpins a positive outlook for rental growth for the 2024/25 academic year.
“We will continue to play a leading role in increasing the supply of much needed student accommodation at a time when HMO landlords are leaving the market at pace and the new supply of purpose-built student accommodation slows,” Joe added.