Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Unite Group reiterates rental guidance after solid Q1

(Sharecast News) - Student accommodation manager and developer Unite has said it is still confident in hitting rental growth targets for the next academic year while property values held more or less stable in the first quarter. The company reiterated its guidance to deliver rental growth of "at least 6%" for the 2024/25 academic year, down from 7.4% last year.

Demand is said to be "strong", with the percentage of beds sold for the upcoming year rising to at 86% by 31 March, up from 80% at the time of its full-year results in February, though down from 90% the same time the year before.

By the end of March, the Unite UK Student Accommodation Fund (USAF) was valued at £2.98bn, a 0.5% reduction on a like-for-like basis, as rental growth of 1.7% was offset by a 2.0% negative impact from the loss of Multiple Dwelling Relief (MDR) - the tax relief that was abolished as part of the Spring Budget which had benefitted a number of Unite's properties.

Meanwhile, the London Student Accommodation Joint Venture (LSAV) valuation increase 0.8% to £1.94bn, as 1.3% rental growth offset the 0.3% negative impact of losing MDR.

"Student demand is strong for the 2024/25 sales cycle, reflecting the continued appeal of our fixed-priced, all-inclusive offer and a growing shortage of high-quality student homes," said chief executive Joe Lister.

"Together with our alignment to the UK's strongest universities, this supports a positive outlook for rental growth for the 2024/25 academic year and underpins our property valuations."

Share this article

Related Sharecast Articles

Citi backs European equities despite trade tensions
(Sharecast News) - Citigroup has flagged European equities as its preference for the second half of the year, following six months of "extraordinary" macro shocks worldwide.
Rockfire Resources reports further Plateau gold intercepts
(Sharecast News) - Rockfire Resources reported further near-surface gold intercepts from the Plateau prospect in North Queensland on Friday, where joint venture partner Sunshine Metals was carrying out drilling as part of its farm-in agreement on the Lighthouse tenement.
URU Metals reports assay results from two Zeb drillholes
(Sharecast News) - URU Metals reported assay results from two drillholes at its Zeb Nickel Project in South Africa's Limpopo province on Friday, confirming the presence of higher-grade nickel-copper-PGE mineralisation beneath the historic open-pit resource.
Caspian Sunrise reports increased production from Kazakhstan's Block 8
(Sharecast News) - Caspian Sunrise reported increased test production from Deep Well P2 at the Block 8 Contract Area in Kazakhstan on Friday, as it moved closer to finalising the acquisition of the asset.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.