Key facts
- Unite Group posted a £417.1 million pre-tax loss in H1 2026, compared to a £185.9 million profit in H1 2025.
- A £530.1 million net revaluation loss impacted the company's first-half results.
- Rental income decreased by 2% to £142 million in the six months to June.
- The company is selling up to £400 million of property and removing 20,000 beds.
- Unite expects occupancy of 94-96% for the coming academic year.
- Like-for-like rental growth slowed to 1.5% in H1 2026.
Unite Group, a major student accommodation provider, has reported a significant pre-tax loss of £417.1 million for the first half of 2026. This marks a substantial reversal from the £185.9 million profit recorded in the same period of 2025. The loss was primarily driven by a £530.1 million net revaluation loss on its property portfolio, reflecting higher property yields due to increased funding costs and investors requiring higher returns.
Rental income saw a slight decrease of 2% to £142 million in the six months ending June 30, 2026, compared to £144.2 million in H1 2025. Like-for-like rental growth also slowed to 1.5%, down from 7.4% in H1 2025 and 4.9% in 2025. Unite is implementing targeted rent cuts in areas like Leicester, Nottingham, and Sheffield where new supply has outpaced demand.
In response to these challenges, Unite is accelerating its asset disposal program, identifying between 15,000 and 20,000 beds for sale, with a target of £400 million in disposals this year. The company has already completed £190 million in disposals, contributing £130 million to Unite's share. This strategic move aims to focus the portfolio on approximately 20 cities and around 55,000 to 60,000 beds, down from the current 72,000, aligning the business with the UK's strongest universities where student demand is robust. The group has also reinvested £165 million through a share buyback program.