Unite Students has said record demand for UK university places from non-EU students this year has vindicated its expansion plans.
Data from UCAS shows a total of 508,000 students placed at UK universities for the 2021/22 academic year, which is 1.6% below the same stage in 2020/21. Those from the UK increased by 1.4%, while non-EU overseas student numbers increased by 5%. But this has been more than offset by a 56% reduction in EU students, impacted by Brexit and Covid-19 travel restrictions.
Chief executive Richard Smith said: There remains a strong outlook for student demand driven by demographic growth, rising participation rates and increasing demand from non-EU markets. This underpins our confidence in a rapid recovery in earnings and total returns, driven by sustainable rental growth, our substantial development pipeline and further opportunities to deploy capital.”
He added that 94% of its beds were now let, a great improvement on last year’s 88%, but still below 2019’s 98% and “slightly below management’s previous expectations for 95-98% occupancy”.
Unite’s UK Student Accommodation Fund portfolio is now valued at £2.8bn, reflecting a 1.1% increase on a like-for-like basis during the quarter. The portfolio comprises 29,627 beds in 76 properties across 20 university towns and cities in the UK.
Its London Student Accommodation Joint Venture portfolio, which comprises 9,716 beds across 14 properties in London and the Aston Student Village in Birmingham, was independently valued at £1.76bn, a 3.7% like-for-like increase over the quarter.
The valuation increase has been driven by increased occupancy for the current academic year and rental growth.
In addition, the USAF and LSAV portfolios have respectively seen 2bps and 8bps of yield compression during the quarter. The USAF and LSAV portfolios are valued at weighted average yields of 5.2% and 4.2% respectively.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
