Unite Group PLC on Wednesday reported significantly higher reservations for UK student accommodation, citing high demand from existing and new students.

Unite Group is a Bristol, England-based owner, manager and developer of purpose-built student accommodation. On Wednesday, it gave updates on UK Student Accommodation Fund and London Student Accommodation as of March 31.

In the 2023/24 academic year, it noted ‘strong progress’ in booking, with 90% of rooms already sold, up from 78% a year ago.

‘Reservations are significantly ahead of recent sales cycles, reflecting strong demand from both new and existing students as well as new nomination agreements with universities,’ said Chief Executive Richard Smith.

The progress reinforces its confidence in rental growth of 6% to 7% for the period, Unite said. It noted the supply of purpose-built student accommodation ‘cannot keep pace’ with growing demand, with houses in multiple occupation landlords also leaving the sector.

USAF’s property portfolio valuation was unchanged on a like-for-like basis during the quarter at £2.89 billion at March 31, but 0.8% higher than £2.87 billion a year ago. LSAV’s portfolio was valued at £1.92 billion, edging down 0.1% on a like-for-like basis during the quarter, but up 2.7% from £1.89 billion a year prior.

‘The valuation movement in the quarter is driven by increased rental growth with offsetting increases in property yields,’ Unite explained.

The company added: ‘Since our preliminary results we have made good progress in further improving the returns on our uncommitted pipeline of four schemes through reductions in land prices, in some cases, and greater certainty over build costs. We are also tracking a pipeline of other new development opportunities offering attractive returns. We hope to commit to a number of these schemes during 2023.’

Unite share rose 0.4% to 967.50 pence each on Wednesday morning in London.

Copyright 2023 Alliance News Ltd. All Rights Reserved.