Unite Group is the UK’s leading manager, owner, and student accommodation developer. Unite noted substantial progress in booking student accommodation, with 90% of the rooms already sold. The numbers have drastically gone up, it was 78% a year ago.
The chief executive officer Richard Smith says “ We continue to make strong progress with bookings for the 2023/24 academic year with 90% of rooms already sold, demonstrating the strength of student demand and the attractiveness of our fixed-priced all-inclusive offer,”
He added, “This progress reinforces our confidence in delivering rental growth of 6-7% for the 2023/24 academic year. Rental growth also continues to support our property valuations as the market adjusts to a higher funding cost environment.”
Unite also said that they have made good progress in further improving the returns on their uncommitted pipeline. They are also tracking a pipeline of other new development opportunities which will offer attractive returns.
The Rising Demand for Student Accommodation
Many cities in the UK are now facing a shortage of houses which is leading to cap student numbers in Glashow. This shortage has resulted in housing scams for international students. According to Unite’s Annual Report 2022, universities tend to prioritize their academic estate and investment in research capabilities.
Smith says, “Universities recognise that high-quality student accommodation is a major differentiator in their ability to attract and retain students”. Most universities have relied on PBSA(Purpose Built Student Accommodation) operators to deliver new accommodations to support this growing number of students.
The PSBA operator also said that it is focusing on single-occupancy bedrooms. According to the operator, they have relatively limited risk if the UK introduces more restrictive visa rules for dependents. However, there is no announcement from the UK government on any amendments to its rules for the dependents that accompany the students.
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