Unite Students says demand for accommodation remains robust as more school leavers head to university and applications from overseas have stabilised.
In a third quarter update it said 95.2% of beds are now sold for the 2025/26 academic year, contributing to 4% rental growth. This is “slightly below target”, but the outlook for international demand remains “encouraging”.
It said this is because of “growing student mobility and the increasing attractiveness of the UK as a study destination as competitor markets introduce more restrictive policies”.
Joe Lister, Unite Students chief executive, said: “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.”
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.
The acquisition of Empiric Student Property is expected to be effective by the second quarter of 2026, pending regulatory approvals.
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