Unite Group has posted a 16% jump in earnings in 2024 to £213.8m after enjoying a boost from strong rental growth.

The student accommodation provider reported rental growth of 8.2% for the 2024/25 academic year, up from 7.4% last year.

Unite also said its occupancy rate of 94% was “significantly ahead” of the sector average, having been underpinned by nomination agreements, as it also revealed it has a “record development pipeline” driving further growth.

Unite said it is on track to deliver rental growth of 4-5% for 2025/26 and that its outlook for 2025 remains “encouraging”.

“We continue to deliver growth in our earnings over the year and our record development pipeline supports this into the medium term,” chief executive, Joe Lister, commented. “This is underpinned by our strong university relationships, sustainable rental growth and substantial investment in our portfolio.

“The outlook for 2025 is encouraging with growing momentum, driven by increasing demand and a more supportive policy environment for international students.”

Lister also said that as private HMO landlords continue to leave the sector, it is creating a shortage of student housing that leave Unite “well-positioned” to respond.

Head of property research at Quilter Cheviot, Oli Creasey, added: “Rental growth in 2024 of 8.2% is impressive, but likely to be the high-water mark in terms of growth rates, with guidance for 2025 of in the 4-5% range.

“Values moving upwards are never a bad thing for investors, but there will be some concerns about the investment yield movement, given student accommodation generally trades at tight yields compared to the wider market.

“That said, the company remains well-placed, with exposure to the UK’s best university towns and a strong balance sheet and is in a good position to weather any choppy waters to come from the economic climate.”

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