Unite Students, the UK’s largest owner, manager and developer of student accommodation, said demand remains strong with visa applications up by almost a third.
It said there is a 2% growth in applications from UK 18-year-olds and student visa applications are up 29% over the first five months of the year.
Across the Unite portfolio 85% of rooms are now reserved for the 2025/26 academic year (2024/25: 94%).
“As previously indicated, we expect a later sales cycle in line with historical trends supported by strong demand from UK students following A-Level results in mid-August and from international students during September,” it said in a trading update.
“Our sales to date support rental growth of 4-5% for the 2025/26 academic year and we continue to target occupancy of 97-98%.”
The company said it did not expect changes in immigration rules will affect student numbers, particularly at high-tariff universities which the group is focused on.
An immigration white paper proposes a reduction in post-study work visas from 24 to 18 months and the potential introduction of a levy on income from international students for reinvestment into Higher Education. Further details are due to be provided in the Autumn Budget.
“We do not expect these changes to materially impact international student demand, particularly for high-tariff universities, at a time when more restrictive policy in the UK’s main competitor markets is making the UK a more attractive destination,” said the update.
Joe Lister, Unite Students chief executive, commented: “Student numbers are expected to increase for the 2025/26 academic year due to a growing UK 18-year-old population and improving trends in international student recruitment.
“Sales momentum has picked up in recent weeks, in-line with our expectations for a later sales cycle, and we continue to target occupancy of at least 97%. Demand for our accommodation remains underpinned by our alignment to the UK’s strongest universities and nomination agreements with our university partners.”
The Renters’ Rights Bill in England is expected to become law later this year and come into effect during the 2025/26 academic year. Secondary legislation around the bill will act to exempt PBSA from the legislation based on compliance with government-approved codes of conduct under which the Group has operated for a number of years.
Unite said: “We anticipate the Bill and exemption will apply to future tenancies (likely from the 2026/27 academic year) and we continue to engage with Government to understand the impact of transitional arrangements for existing tenancies at the time of implementation.
“The Bill will have a significant impact for the Houses of Multiple Occupancy (‘HMO’) sector through new regulation. We expect this to result in higher costs for students and a reduced supply of HMO student housing over time.”
Planning has been granted for the Castle Leazes joint venture in Newcastle. Work is underway to secure outstanding approvals and start on-site later this year. This supports delivery of the first phase of the 2,000-bed project for 2028/29 academic year.
Unite Students provides homes to 68,000 students across 152 properties in 23 leading university towns and cities. It currently partners with over 60 universities across the UK.
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