Unite Group Plc (LON:UTG), Unite Students, the UK’s leading owner, manager and developer of student accommodation, today announces an update on current trading and quarterly property valuations for the Unite UK Student Accommodation Fund (USAF) and the London Student Accommodation Joint Venture (LSAV) as at 30 September 2025.
Highlights
· 95.2% of beds sold for the 2025/26 academic year (2024/25: 97.5%)
· Sales to date deliver 4.0% rental growth for 2025/26 (2024/25 8.2%)
· Reiteration of FY2025 guidance for adjusted EPS of 47.5-48.25p
· Rental growth driving modest valuation increases in Q3 (USAF: 0.0%, LSAV 0.4%)
Joe Lister, Unite Students Chief Executive Officer, commented:
“We have sold 95% of beds and delivered rental growth of 4.0%. While this is slightly below our target, we saw a strong clearing period which has contributed to our outperformance of the wider PBSA sector. Looking ahead, the outlook remains robust, underpinned by growing demand from school leavers and stabilising international admissions. Our income is also underpinned by nomination agreements with long-term university partners, which now cover 59% of our beds. Our continued focus on affordability and quality continues to resonate with students and universities. At the same time, our portfolio is increasingly aligned to high-tariff institutions, which continue to attract a growing share of student demand.”
Current trading
Higher Education sector update
The latest UCAS data shows 512,000 undergraduate students have accepted places at university for the 2025/26 academic year, a 3% year-on-year increase. High tariff universities have continued to capture a growing share of student demand with acceptances up 8% year-on-year, which compares to growth of +2% and -2% for Medium and Low Tariff universities respectively. Growth in acceptances has been particularly strong for UK 18-year-olds and international applicants from China and the United States.
Home Office data shows 7% growth in applications for study visas in the year to August with applications in the peak summer months in line with 2024 levels. Overall study visa applications remain 11% below 2023 levels, prior to the introduction of restrictions on dependant family members for postgraduate taught students. The outlook for international demand remains encouraging thanks to growing student mobility and the increasing attractiveness of the UK as a study destination as competitor markets introduce more restrictive policies.
2025/26 lettings performance
As we enter the final stages of the sales cycle, 95.2% of rooms are now reserved for the 2025/26 academic year (2024/25: 97.5%). Growth in undergraduate acceptances has translated into strong demand from universities for accommodation, with 59% of beds let under nomination agreements for the 2025/26 academic year (2024/25: 57%). Direct-let sales to international students are in line with 2024/25, with fewer rooms sold to UK students and higher vacancy in a small number of regional cities as they take time to adjust to new supply.
Our sales to date have delivered rental growth of 4.0% for the 2025/26 academic year, with beds sold on nomination agreements outperforming direct-let sales.
We have outperformed the wider PBSA sector, reflecting the benefit of the income underpinning from our nomination agreements with our long-term university partners. We remain confident that our alignment to the strongest universities and high-quality, affordable portfolio position us to best meet university and student demand for accommodation.
Earnings guidance
Our sales performance and trading through the first nine months of the year supports reiterated guidance for adjusted EPS of 47.5-48.25p for FY2025.
Acquisition of Empiric Student Property
In relation to our offer to acquire Empiric Student Property plc (“Empiric”), we were pleased to receive approval from Empiric shareholders for our recommended cash and share offer for the company at the Court and General meetings held on 6 October.
Following initial engagement, the Competition and Markets Authority has started its pre-notification process ahead of commencing its formal Phase 1 investigation of the proposed acquisition. We anticipate that the Scheme will become effective by the second quarter of 2026, subject to the Conditions and certain further terms set out in the Scheme Document.
Quarterly fund valuations
At 30 September 2025, USAF’s property portfolio was independently valued at £2,853 million, unchanged on a like-for-like basis during the quarter and a 1.4% increase for the year to date. The valuation increase reflects quarterly rental growth of 1.8%. Property yields remained broadly stable over the quarter at 5.2%. The portfolio comprises 22,361 beds in 56 properties across 17 university towns and cities in the UK.
LSAV’s property portfolio was independently valued at £2,108 million, a 0.4% increase on a like-for-like basis during the quarter and 1.9% for the year to date. The valuation increase in LSAV is driven by quarterly rental growth of 0.8%. Property yields were broadly unchanged over the quarter at 4.5%. LSAV’s portfolio comprises 9,710 beds across 14 properties in London and Aston Student Village in Birmingham.
| Drivers of LfL capital growth (Q3) | ||||
| ValuationSeptember 2025 | Rental growth | Yield movement(bps) | Capital growth* | |
| USAF | £2,853m | 1.8% | +7 | 0.0% |
| LSAV | £2,108m | 0.8% | +1 | 0.4% |
| Drivers of LfL capital growth (YTD) | ||||
| ValuationSeptember 2025 | Rental growth | Yield movement(bps) | Capital growth* | |
| USAF | £2,853m | 4.1% | +8 | 1.4% |
| LSAV | £2,108m | 2.7% | +2 | 1.9% |
* Capital growth presented net of capital expenditure for property maintenance and improvement, but excludes fire safety spend
The Royal Institution of Chartered Surveyors (RICS) has introduced new independence rules for valuation firms. Under the new rules, the majority of USAF’s portfolio was valued by a new firm from 30 September 2025. LSAV will rotate valuers for its 31 December 2025 valuations.
Investor and Analyst event
Unite Group will host an event for institutional investors and analysts on the afternoon of 27 November at Deutsche Numis’ office, including updates on the higher education sector, the outlook for the 2026/27 sales cycle and the acquisition of Empiric. Further details will be provided in due course.
