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Unite Group, a leading UK student accommodation provider, has forecast lower earnings for 2026 due to reduced student occupancy and falling rental income. The company's shares fell to their lowest in over a decade following the announcement. The outlook reflects a broader trend in the sector, including a decline in Chinese postgraduate tenants and rising operational costs. Despite the challenges, Unite recently completed a GBP 634 million (USD 839.48 million) acquisition of Empiric Student Property, while anticipating moderate rental growth and slightly lower occupancy in the upcoming academic year.
Britain's Unite Group has signaled a decline in earnings for 2026 as the student housing market shows signs of weakness. The company faces lower student occupancy levels, reduced rental income, and delays in development completions. This outlook caused its shares to drop over 6% in early trading, reaching their lowest point since early 2015. Advertisement
The company's challenges are part of a wider trend affecting the sector, with fewer students, particularly Chinese postgraduates, seeking accommodation amid rising costs and geopolitical uncertainty. Earlier this month, Empiric Student Property reported a 6% fall in occupancy, attributing the drop mainly to a decrease in reservations from Chinese student tenants.
Unite Group also highlighted that it expects a 7%-10% reduction in adjusted earnings per share for 2026. Rental growth for the 2026/27 academic year is projected at 2%-3%, lower than the 4% recorded in 2025/26. Occupancy is expected to reach 93%-96% in the next academic year, slightly below the 95.2% achieved previously.
Separately, the UK's competition authority approved Unite Group's acquisition of Empiric Student Property for GBP 634 million (USD 839.48 million). The deal strengthens Unite's position in the student accommodation market despite current sectoral headwinds.
Source Reuters
5th Jun, 2025
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