Britain's biggest student landlord, Unite Group, is struggling to fill its university halls of residence as more young people choose to live at home to save money, amid rising student debt concerns and a drop in overseas learners.
In a trading update, the company said 86% of its beds had been reserved for the 2026/27 academic year starting in September, after cutting prices. While this is marginally higher than 85% a year ago, it is significantly lower than the 94% reservation rate seen ahead of the 2024/25 academic year. The situation marks a sharp reversal from the post-Covid period, when Unite's halls were regularly more than 97% full.
Share price slumps as firm sells off properties
Unite Group's share price has more than halved since 2022 and fell a further 2% in early trading following the latest update. In response, the company has put a host of halls in less popular universities up for sale to focus on leading institutions, aiming to offload between £300 million and £400 million worth of properties this year.
Joe Lister, Unite Group chief executive, said: “We have seen strong progress in reservations for the 2026/27 academic year since our last update in May. This reflects our strong direct marketing and sales performance together with targeted adjustments to pricing in selected markets.” He previously noted that “student loans haven’t kept up with inflation. And so more of the burden is being placed on students themselves or on their families.”
Portfolio details and financial outlook
Unite Group operates 72,000 beds across 208 properties in 29 cities. Its Unite Students brand primarily serves first-year students, with over 12,500 beds in London, 5,600 in Manchester, 5,300 in Liverpool, and almost 5,000 in Bristol. It also owns Hello Students, focused on upper-year students.
Despite current challenges, the company expects its properties to be 94% to 96% full for the next academic year, with rental income growth of 1% to 2%—down from a previous forecast of up to 3%. Unite has also been forced to reduce the estimated value of its properties; the Unite UK Student Accommodation Fund fell by 2.2% to just under £3 billion.
Market headwinds and expert analysis
Max Harper, senior analyst at Third Bridge, commented: “The wider market is likely to continue facing headwinds, with higher live-at-home rates among students and falling demand for lower-tier universities as the cost-benefit of a degree comes into question.”
