Student Housing Giant Unite Reports Significant Drop in Room Bookings as Market Shifts

Britains largest student accommodation provider, Unite Group, is experiencing its slowest booking rate in over a decade, excluding the pandemic period. The company, which manages 68,000 rooms nationwide, reports only 85% occupancy for the upcoming academic year, marking a substantial decline from 94% at the same point last year and 98% in 2023.

The current booking levels represent the lowest occupancy rate since 2014, with premium accommodation still available across major university cities. Bristol properties currently offer en-suite rooms starting at £239 weekly, whilst prime London locations near Euston station list one-bedroom flats at £695 per week.

Market sentiment reflects these challenges, with Unite’s shares closing at 814½p on Tuesday, down 4p or 0.5%. The company’s stock value has deteriorated by one-third over the past two years, highlighting investor concerns about the sector’s trajectory.

Industry observers remain divided on the underlying causes. Unite maintains these figures merely represent a ‘normalisation’ of booking patterns post-pandemic, projecting final occupancy rates between 97% and 98%. The company expects rental growth between 4% and 5% year-on-year, despite current headwinds.

Chief Executive Joe Lister remains optimistic, citing a 2% increase in domestic applications during 2025’s first five months and a 29% rise in student visa applications. “Student numbers are expected to increase for the 2025-26 academic year due to a growing UK 18-year-old population and improving trends in international student recruitment,” Lister stated.

The Office for Students presents a more cautious outlook, noting universities’ overly optimistic recruitment projections and reporting a 16% decline in international student applications for 2024. The impending Renters’ Rights Bill is expected to impact the multiple occupancy housing market significantly, potentially leading to increased costs and reduced supply in the traditional student housing sector.

Despite these challenges, Unite’s property portfolio value has shown resilience, increasing by 0.6% to £5.03 billion over the past six months, suggesting underlying strength in the student accommodation asset class despite operational headwinds.