Unite Group reports record demand for beds as student housing crisis grows
Table of Contents
Key Highlights:
- Unite Group reported record demand for student beds, with 71% already booked for the 2024/25 academic year.
- This booking rate is up from 70% in the same period last year, showing continued strong demand.
- The company expects to achieve 5% rental growth across its portfolio this year.
- Unite is on track to meet its annual earnings target of 43-44 pence per share.
- The company continues to expand with four new development schemes underway in London, Bristol, Edinburgh, and Nottingham.
News in Detail:
Unite Group, a student housing provider, saw high demand for its lodgings today. They noted that a record-breaking 71% of its beds are already reserved for the 2024/25 school year. Compared to previous years, this denotes a 1% rise and speaks to Unite’s steady popularity.
Encouraged by this strong demand, Unite aims to increase its rent prices by 5%. This is good news for their extensive portfolio, covering over 70,000 beds throughout the UK. Their optimism comes from their belief that higher rental earnings will counterbalance any financial strain, allowing them to achieve their 43-44p per share target this year.
At the same time, Unite is pushing to evolve. Their focus? Four new schemes in key university cities like London, Bristol, Edinburgh, and Nottingham. With these developments, they expect to add roughly 2,000 new beds within two years. This growth is aligned with the current market situation, where student accommodation demand is more significant than the supply, incredibly since rental property availability is shrinking.
CEO Joe Lister cheered Unite’s continued success in fulfilling students’ housing needs, especially as conventional landlords reduce supply. He remains hopeful for increased rental profits next year, backed by impressive booking statistics.
Snapshot:
In a nutshell, Unite’s current performance reaffirms its sturdy market position. It also underscores its consistent ability to meet the growing demand for quality, well-situated student housing from both students and universities.
