Students could be in for a major housing crisis in the year ahead as university accommodation provider Unite says its properties are already 98% sold, two months before the academic year gets underway.
Unite said its reservation rate was a record high, and now expects its properties to be completely full by the time the academic year begins. Last year, its rooms were only 91% let at this time.
That prompted the landlord, which lets out beds to 70,000 students across 157 properties to up its guidance for rental value growth this year to 7%.
CEO Richard Smith said: “The supply of purpose-built student accommodation cannot keep pace with growing student demand at the same time as HMO landlords are leaving the sector.
“Unite is uniquely positioned to address this housing need through our best-in-class operating platform, university relationships development and asset management capabilities.”
The value of Unite’s main portfolio ticked up by 1.2% to £2.9 billion, while its London joint venture’s value was up by 1.1% to £1.9 billion. Smith said the high leasing rates would keep Unite’s property values high even as interest rates soar.
Analysts at Peel Hunt said: “Encouragingly, both quarterly fund valuations are positive, despite the macro headwinds.
“Overall, an upbeat statement, with strong demand leading a further increase in rental growth guidance and the quarterly fund valuations also remain positive.”
The shares are flat at 848p.
