Unite Students has kept rents broadly flat for the 2026/27 academic year, with bookings reaching 95% of its beds, matching the proportion reported a year earlier. The purpose-built student accommodation (PBSA) provider has reaffirmed its adjusted earnings guidance and expects like-for-like income growth of between 0.5% and 1%, reflecting slightly higher occupancy and broadly flat rents.

The company initially sought rent increases of between 2% and 3%, but lowered its forecast over the summer and offered discounts, particularly at halls in Leicester, Nottingham and Sheffield.

Changing demand and university agreements

A shift towards undergraduates and away from postgraduates has shortened average tenancies and affected pricing. Unite expects these shorter undergraduate agreements to provide opportunities for semester-based and short-term lets.

Changes to visa rules have also made Britain less appealing to international postgraduates, while more domestic students are choosing to live at home to reduce university costs.

Unite has secured additional nomination agreements for the coming year, reflecting rising acceptances at the strongest universities, around which its portfolio is concentrated. Under these arrangements, universities commit to blocks of rooms and allocate them to students. This provides accommodation providers with more predictable income and reduces the risk of empty rooms.

Local demand and supply remain important. Unite’s newly completed 719-bed Hawthorne House development in Stratford is fully let. However, chief executive Joe Lister said in March that vacancies were concentrated in Leicester, Nottingham and Sheffield, where weaker demand coincided with high levels of existing and new supply.

Unite has also put four student accommodation properties in Leicester up for sale. The buildings form part of the Empiric portfolio, with proceeds earmarked for university joint ventures and improvements to buildings in its strongest markets.

Implications for student landlords

The managing director of Accommodation for Students, Simon Thompson, said: “For student landlords, Unite’s success in securing bookings suggests there are students willing to commit, although PBSA owners have less scope to dictate what they pay in some popular student cities.

“Also, PBSA operators may need to budget for concessions when assessing returns, particularly where competing schemes give prospective student tenants more choice.”

He added: “Those letting shared houses could also face pressure if discounts brought purpose-built rooms within reach of tenants who would otherwise favour cheaper accommodation.

“That means securing an acceptable offer early may prove more valuable than holding out for a higher asking price and risking an empty bedroom.”