Purpose build student schemes to surge again

Aaron Morby 2 months ago
Share

Student accommodation developer Unite is stepping up its development programme predicting a further surge in demand over the next decade.

The firm said a decline in Houses in Multiple Occupancy supply over the last few years, driven by stricter renter reforms and higher mortgage costs, had provided fresh impetus to the purpose-built student accommodation sector.

Announcing strong earnings for last year, chief executive Joe Lister today said there were strong growth opportunities for the sector in the years ahead.

He said Unite had now built up a record £1.3bn development pipeline in the strongest University markets.

This includes a £569m committed pipeline in Russell Group cities, and a £250m joint venture agreed with Newcastle University, agreed this month.

Unite is also assembling a £452m future development pipeline and added a new London scheme for delivery in 2028.

He added that Uite was also targeting £50m-75m spend annually on refurbishment projects.

Lister said: “Since 2021, there has been an 8% reduction in the number of HMOs in England, equivalent to 100,000-150,000 fewer beds available for students to rent, equivalent to 100,000-150,000 fewer beds available for students to rent.

“Private landlords are choosing to leave the sector in response to rising mortgage costs and increasing regulation.

“New supply of PBSA is also down 60% on pre-pandemic levels, reflecting planning backlogs and viability challenges created by higher costs of construction and funding.

“Obsolescence of older university accommodation is also expected to increase due to building age and the need to operate buildings more sustainably. In many cities, property valuations are below replacement costs, further constraining new supply.

He added: “The combination of these factors has significantly increased demand for our accommodation in many cities and we expect this supply challenge to continue for a number of years.”

“The outlook for development is strong and we are tracking a number of further opportunities at attractive returns, which we will look to secure over the next 6-12 months.”

From the £452m uncommitted future pipeline, Unite plans an additional 2,373 beds.

This includes the Freestone Island project in Bristol, where planning is expected shortly. It is also hoping for planning in the second quarter for the 800-bed Central Quay development in Glasgow.

And Unite has secured an option to acquire a 501-bed project in Elephant and Castle in London. This scheme is expected to be delivered in 2028, subject to planning.

 

Latest news

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
5 hours ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
12 hours ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
11 hours ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
11 hours ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
11 hours ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
11 hours ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
3 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
3 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
3 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
3 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
3 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
3 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
4 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
4 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
5 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
4 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
4 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
4 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
5 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
4 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
5 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
5 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
5 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
5 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
6 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
6 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
6 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
6 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
6 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
6 days ago

Contractor services