41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 23
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
We expect supply of competing student accommodation to remain
constrained given universities’ desire to focus their investment on their
academic estates and increasing regulation for private landlords.
UNIVERSITY
OUTSOURCING
FOCUS ON QUALITY,
SUSTAINABLE HOUSING
Universities recognise that high-quality student
accommodation is a major differentiator in their ability
to attract and retain students and will typically seek to
guarantee accommodation for their domestic first year and
international students. Universities own around 300,000
beds of their own accommodation but new investment
tends to be prioritised towards their academic estate and
investment in research capabilities. As a result, universities
have relied on private owners of Purpose Built Student
Accommodation (PBSA) to deliver new accommodation to
support growing student numbers.
The number of households living in the private rented
sector in England and Wales has more than doubled over
the past 20 years. As a result, Government Policy in the
private rented sector is focused on ensuring that homes
are of good quality and safe for tenants. The Government
estimates that over a fifth of privately rented homes are in
poor condition and launched a consultation in the second
half of 2022 on whether minimum standards should be
introduced in the sector.
The Covid-19 pandemic has increased the operational and
financial challenges faced by universities and there is a
growing appetite for partnerships with leading operators
of student accommodation.
The UK’s commitment to achieve net zero carbon by 2050
will require significant reductions in energy use from
domestic properties. This includes increasing Minimum
Energy Efficiency Standards (MEES) which will require
rental properties to achieve EPC ratings of at least C by
2027 and B by 2030.
What it means for Unite
What it means for Unite
•
Demand for new, long-term nomination
agreements with universities
•
•
Opportunities for strategic university
partnerships for on and off-campus
development as well as the transfer
of existing accommodation stock
New regulation of the HMO sector may result
in some private landlords seeking to exit the
market, creating the opportunity for the PBSA
sector to capture a growing share of students
requiring accommodation
•
Increasing likelihood of a ‘green premium’ or
‘brown discount’ for PBSA assets as sustainability
considerations grow in importance for stakeholders
•
The growing number of long-term renters in the
UK supports the growth of the BTR sector. We
believe there is an exciting opportunity to grow
our platform in the living sector by catering to the
growing number of young professionals living in
major UK cities
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