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Unite Group cuts rents and lowers profit outlook as number of international students fall
Giant student accommodation provider Unite Group has lowered its profit outlook for the third time in four months and cut rents in some cities amid a fall in the number of international students coming to the UK.
Unite Group cuts rents and lowers profit outlook as number of international students fall #UKhousingUnite Group has lowered its profit outlook for the third time in four months and cut rents amid a fall in the number of international students coming to the UK #UKhousingKaran Khanna, chief operating officer at Unite Group, revealed that the student landlord has cut rents and the length of tenancies from 51 weeks to 44 weeks in cities such as Nottingham, Leicester and Sheffield due to weaker demand.
The provider is making similar changes in other schemes in Bristol and Edinburgh, he added.
Just 68% of its beds are reserved for the next academic year from September, prompting Unite to focus on owning and managing accommodation in cities with “higher-tariff” universities, meaning those that require the highest grades from students for entry.
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The landlord said it would focus on building on-campus schemes and joint ventures with universities after the completion of Hawthorne House, a 719-bed scheme in Stratford, east London, expected in June, and Central Quay, a 934-bed project in Glasgow, expected in 2027.
Unite is also stepping up disposals and cost-cutting measures. It announced the £186m sale of St Pancras Way, a 571-bed scheme in London, to the Unite UK Student Accommodation Fund, its joint venture with Singaporean sovereign wealth fund GIC.
The giant student landlord revealed rent cuts alongside its results for 2025. It reported a post-tax profit of £97.6m for the year to December 2025, down from £441.8m in 2024.
Rental income rose 9% to £307.7m, but this was offset by £72.3m in net valuation losses on property owned and under development. Net finance costs also rose to £37m, up 147% from the year before.
Unite, which last summer acquired rival provider 7,700-bed Empiric Student Property, warned that it would deliver occupancy and rental growth towards the lower end of its guidance ranges, 93% to 96% and 2% to 3% respectively, in the 2026-27 academic year.
This will translate into like-for-like income growth of 0% to 2%, down from 0% to 4%. The company is aiming for between £300m and £400m of property sales annually, starting this year.
As a developer, Unite recently cancelled a £147m project for 605 beds in Paddington in London and deferred the 500-bed Freestone Island scheme in Bristol, citing viability issues.
It said that for new schemes to be viable, they now require minimum rents of around £230 per week, while Building Safety Act gateways have been delaying delivery programmes by between six and 12 months.
It is exploring “all options” for the land it owns – sites for an additional 2,400 beds – including selling them and joint ventures.
Unite is the UK’s largest owner, manager and developer of purpose-built student accommodation, with 143 properties across 22 towns and cities.
Joe Lister, chief executive of Unite Students, said: “Growing domestic demand for higher education, improving international mobility and constrained housing supply underpin the long-term prospects for the sector.”
He added: “We have started to deliver on the strategic plan set out at the end of 2025, focusing on closer alignment to the strongest universities, building on our university partnerships and taking decisive action on costs.”
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