The Unite Group, a prominent name in the UK’s student accommodation sector, has kicked off 2024 with a bang, recording unprecedented demand for student beds. This surge reflects the company’s continued appeal and the enduring strength of the student housing market.
Unprecedented Demand for Accommodation
As of now, Unite Group boasts an impressive 71% of its beds already booked for the 2024/25 academic year. This figure slightly surpasses last year’s bookings, hinting at a growing trend in student accommodation needs. With a portfolio of 70,000 student beds spread across numerous UK towns and cities, Unite is a major player in the market.
Joe Lister, the CEO of Unite Students, expressed his satisfaction with the strong start to the 2024/25 sales cycle. The company’s all-inclusive, fixed-price offerings continue to attract students and universities alike, laying a strong foundation for potential rental growth in the coming academic year.
Balancing Costs and Quality
Amid concerns about the rising cost of living affecting students and their families, Unite Group remains committed to providing value-for-money accommodation. This approach is essential to mitigate increasing pressures from staff and utility costs while continuing to invest in property upgrades. The company’s focus is not just on maintaining affordable prices but also on ensuring sustainable rental growth.
Expansion and Development Plans
Looking ahead, Unite Group is not resting on its laurels. The firm is advancing with four development projects in London, Bristol, Edinburgh, and Nottingham, which will add 2,000 beds to its inventory between 2024 and 2026. This expansion is partly fueled by a trend where private landlords are exiting the market due to rising mortgage costs, creating a unique opportunity for Unite to increase its footprint.
Lister emphasised the company’s role in addressing the growing need for student accommodation. With the exit of HMO landlords and a slowdown in new purpose-built student accommodation, Unite’s commitment to working with university partners is more crucial than ever. Their goal is to ensure students have access to both high-quality and affordable housing options.
Market Response
Despite the positive news, Unite Group’s shares experienced a slight dip, dropping 0.67% to 1,039p in late afternoon trading on Tuesday. This minor fluctuation, however, does not overshadow the company’s overall strong position and optimistic outlook for the 2024/25 academic year.