Unite’s sales boom as student housing demand shows no sign of slowing
Unite Students has reported double-digit growth as demand for student housing continues to far outpace supply.
The FTSE 100 firm, which owns and manages university housing, reported earnings of £213.8m for 2024 – up 16 per cent year on year.
Rents grew by 8.2 per cent, the company said, with occupancy at 97.5 per cent. This is slightly lower than last year’s 99.8 per cent, but still ahead of the sector average of 94 per cent.
Unite said its performance had been supported by higher demand from international students thanks to a more relaxed regulatory environment – visa issuance is up by 14 per cent year on year – and an increase in university applications by 18-year-olds in the UK.
Over two-thirds of the company’s housing has already been reserved for the coming university year.
It is targeting rental growth of four to five per cent in the coming year, as well as 97-98 per cent occupancy.
Joe Lister, chief executive of Unite Students, 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.”
Unite has a committed pipeline of £1.2bn of traditional student housing developments close to campuses, which is fully funded up to 2028.
The company added that acquisitions have become “more attractive” and that it “expect[s] to see an increased availability of investment opportunities over the next two years.”