Corporate student accommodation provider Unite Group has reported a big jump in earnings on the back of a shortage of lets for students.

In a report to shareholders Unite says it now owns and operates 70,000 beds with its rental income jumping nine per cent to £370m in 2023 – thanks Ito higher rents and higher occupancy levels. The company’s earnings in 2023 were £184m – a 13 per cent jump on 2022.

It now predicts a six per cent rent hike for the 2024/25 academic year. 

Unite chief executive Joe Lister says: “The supply-demand imbalance of student accommodation is acute and continues to intensify. We play a leading role in tackling this shortage, easing pressure on the wider housing market and freeing up homes for families.

“Our development and asset management pipeline stands at a record £1.3 billion and we are taking an innovative approach to delivering more homes for students. University partnerships provide a compelling opportunity to deliver new, high-quality accommodation and our first joint venture with Newcastle University is only possible for a business of our reputation, scale and development expertise.”

Unite’s pipeline includes £569m in cities with elite Russell Group universities, a £250m joint venture with Newcastle University £569, and £452m allocated to projects in cities with the tightest supply.