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Unite Students Announce Record Profits as Student Accommodation Demand Rises

Unite Student Group has announced an 84% increase in annual profits in 2015, as student accommodation demand continues to grow.

Unite Student Group has announced an 84% increase in annual profits in 2015, as student accommodation demand continues to grow.

Unite, who own more than 130 student properties throughout the UK, announced net gains of £61.3 million for its property portfolio, now valued at £3.8 billion.


The growth of the company stands in parallel to the continued success of the student property asset class within the UK property market, as well as the increasing demand for modern accommodation options amongst students.


Student enrolment numbers in the UK are just 1% below the level they were prior to 2012’s tuition fees, aided by the government lifting restrictions on the number of students able to attend universities and increasing the demand for purpose-built student accommodation (PBSA).


Commenting on the future of the student accommodation market, chief executive at Unite, Mark Allen said that he expects more students to be living in PBSA than in university provided accommodation before the end of the decade.


Allen also stated that Unite expects, ‘the student population to increase by 60,000 year on year’, but estimates that universities will only be able to cater for half of these students, creating a shortfall of 30,000 beds in the UK per year that private developers such as Unite will be required to fill.


Last year saw more than £6 billion invested in the student accommodation sector, surpassing 2014’s previous of £2.2 billion. Construction of student accommodation projects also reached a record high in 2015, with more than 4,500 units constructed, the highest number since 2008.


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