Unite expects student numbers to keep rising

5th Nov 2010 07:44

Student accommodation outfit Unite Group said the package of recommendations in the Browne Review into the Future of Higher Education Funding was broadly in line with its expectations.Unite's view remains that demand for its accommodation will remain robust in the coming years."The student accommodation market is still not in equilibrium, with demand outstripping supply. In the short term we believe this will continue to be the main driver of market performance with the most undersupplied local markets continuing to offer good growth prospects," the group said.It did, however, recognise that high tuition fees may encourage more students to attend universities close to home so that they may continue to live in their normal residence, rather than in student accommodation.The group achieved a reservation rate of 97% across its portfolio for the 2010/11 academic year, up from 96.5% the year before. Rental growth of 3-4% is expected for the full year.Net Portfolio Contribution, which represents the income from the group's investment and management activities less all business costs and overheads except those relating to development activity, has continued to improve in the second half of the year."The group has delivered a strong sales and rental growth performance for the 2010/11 academic year which provides a solid foundation for financial performance in 2011,"said chief executive Mark Allan. "Good progress has also been made in the delivery of the development pipeline with all sites now contractually secure, new development finance in place and planning consents already achieved on 817 of the 2,300 bed London pipeline," Allan added.