Unite Group lowers student rents for first time in 25 years

Unite Group, the largest student accommodation provider in the UK, has reduced rents across its portfolio by 0.3% for the current academic year. This marks the first rent decrease in over 25 years, excluding the Covid-19 lockdown period.

The company attributed the decline to falling demand, driven by a decrease in international student numbers and an increasing trend of British students choosing to live at home to save costs. Weak demand was particularly noted in university cities such as Nottingham, Leicester, and Sheffield.

Despite the price reduction, Unite reported an occupancy rate of 95.6% across its 72,000 places, a slight increase from 95.3% the previous year. Chief Executive Joe Lister stated that reservations were in line with expectations as student behavior and demand evolved.

The group also reported a decline in its property portfolio valuation, which fell 3.9% between July and September to £4.7 billion, representing a total decline of approximately 8% for the year. In response to these market pressures, Unite is considering the disposal of certain halls of residence.