Unite Group, the UK’s largest provider of purpose-built student accommodation (PBSA), has announced a 4% to 5% rent increase for the 2025/26 academic year. This decision is driven by high student demand, a shortage of new housing, and rising operational costs.
Projected Student Rents for 2025/26
Current Weekly Rents (2024/25)
- Outside London: £180 per week
- London: £250 per week
Expected Weekly Rents for 2025/26
With the planned 4% to 5% increase, students may pay:
- Outside London:
- 4% increase: £187.20 per week
- 5% increase: £189.00 per week
- London:
- 4% increase: £260.00 per week
- 5% increase: £262.50 per week
Why is Unite Increasing Rents?
Several key factors contribute to the planned rent increase:
1. Growing Student Demand
- University applications from UK 18-year-olds are up 2% for 2025/26.
- International student numbers continue rising, with a 14% increase in visa issuances.
2. Limited Housing Supply
- New PBSA construction remains 60% below pre-pandemic levels, leading to a shortage of student housing.
- Cities like London, Bristol, and Manchester are facing some of the worst shortfalls.
3. High Occupancy & Pre-Bookings
- Unite Group’s 2024/25 occupancy rate is 97.5%, showing strong demand.
- Over 75% of beds for 2025/26 are already pre-leased.
4. Rising Costs & Inflation
- Operational costs, including energy, labor, and maintenance, have significantly increased.
- The rent increase helps maintain service quality and fund new developments.
Unite Group’s Financial Growth & Expansion Plans
Unite Group’s strong financial performance in 2024 supports this decision:
- Revenue Growth: +8.4%, reaching £299.3 million
- Pre-tax Profit: £444 million (up from £102.5 million in 2023)
- Dividend Increase: +5% to 24.9p per share
Future Investments
Unite Group plans to invest over £1 billion in new student housing projects, focusing on Russell Group university cities.
What This Means for Students?
While rising rents may increase financial pressure, Unite Group highlights that its accommodation remains competitive compared to private rentals.
How Students Can Prepare
- Book early to secure accommodation at the best rates.
- Explore scholarships and bursaries to help offset costs.
- Compare PBSA options vs. private rentals for affordability.
Final Thoughts
The 2025/26 Unite rent increase reflects the widening gap between supply and demand in the UK student housing market. With high occupancy rates and limited new builds, further rental growth is likely.
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