41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 22
20
THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
MARKET OVERVIEW
MARKET TRENDS
The outlook for our business is influenced by structural trends in Higher Education and
student accommodation, which impact the size of our addressable market. Cyclical factors
also have an impact on the economic conditions we face, the cost and availability of funding
for the business and the level of investment in student accommodation. Together these
factors influence our strategy and the long-term growth prospects of the Group.
STRUCTURAL TRENDS
Demand for purpose-built student accommodation is underpinned by
a range of structural drivers, which support growth in student numbers
for UK Higher Education.
GROWING DEMAND
FOR HIGHER EDUCATION
SUPPORTIVE
GOVERNMENT POLICY
Full-time student numbers in UK Higher Education
have grown by 545,000 (32%) over the past 10 years,
driven by a combination of rising participation rates
and international growth.
UK Higher Education Policy recognises the global standing
of the UK’s universities which attract students from all over
the world, conduct vital research, and generate enormous
benefits for our economy and our society.
Application rates to university by UK school leavers are
now at their highest ever level, reflecting the value young
adults place on a higher level of education and the life
experience and opportunities it offers. International
student numbers have also continued to grow thanks to
increased demand from non-EU markets such as China
and India, which has more than offset a reduction in EU
student numbers post-Brexit.
The Skills for Jobs White Paper, published in 2021,
underlines the Government’s commitment to widening
participation in post-18 education and strengthening
the global standing of the UK Higher Education sector.
The Higher Education sector regulator, the Office for
Students (OfS), is separately reviewing the quality of Higher
Education provision and value-for-money for students
and the taxpayer. This may lead to the introduction of
minimum standards for Higher Education providers based
on course completion rates and the share of students
going on to employment or further study.
Looking forward, we anticipate strong growth in student
numbers over the next decade. This reflects significant
demographic growth, which will see the population of
UK 18-year-olds increase by 140,000 (19%) by 2030.
What it means for Unite
What it means for Unite
•
Increased demand for purpose-built
student accommodation from students
and university partners
•
•
Opportunities for new development in
markets benefiting from the strongest
growth in student numbers
Potential for stronger growth in student numbers
for those universities and cities delivering highlyvalued teaching, better employment prospects
for graduates and high-quality research
•
We are confident that our strategic alignment to
high and mid-ranked universities positions us
to successfully navigate future changes to the
Government’s Higher Education Policy