Unite Group, the UK’s largest owner and manager of student accommodation, has reported that 74% of beds are now reserved for the 2026/27 academic year, broadly in line with the same point last year at 76%.
The company reiterated guidance for occupancy at the lower end of 93-96% and rental growth of 2-3%, down from 4.0% achieved in 2025/26. Direct-let sales are running slightly ahead of last year, supported by targeted pricing adjustments and promotional activity.
The student accommodation market is changing, and Unite is adapting by accelerating its push to reshape its portfolio around the UK’s strongest universities.
The group has £130 million of disposals completed or under offer and is marketing a further £500 million of assets for sale over the next 6-12 months. Unite has put a portfolio of around 7,000 beds in lower-growth locations up for sale, drawing strong early investor interest, with capital values sitting well below replacement cost.
Unite also commented on the progress of its Empiric acquisition.
The Empiric acquisition is delivering £3 million in annualised cost synergies so far, with targets of £9 million this year and £17 million from 2027 onwards. Hello Student bookings sit at 33%, behind last year’s 48% at this stage, though Unite attributed the gap to a delayed sales cycle following a technology upgrade and has since brought Empiric properties onto its international sales network.
Quarterly fund valuations showed modest declines driven by yield expansion. USAF’s portfolio fell 1.7% on a like-for-like basis to £2,798 million, with yields widening 9 basis points to 5.4%.
The LSAV portfolio declined 2.4% to £2,034 million, with 13 basis points of yield expansion, bringing the weighted average to 4.8%.
Rental growth within the funds remained positive but was insufficient to offset the outward yield movement.
Unite Group shares were 1% higher shortly after the open on Friday.