Unite student housing suffers slump in property value as rents fall

Student accommodation giant Unite has suffered another drop in property values as higher interest rates and weaker rental income continue to weigh on the FTSE 250 landlord. The company said on Thursday that the value of its UK Student Accommodation Fund fell four per cent in the third quarter to £2.8bn, while its London-focused joint venture saw a 3.4 per cent decline to £1.9bn. The falls were driven by higher yields demanded by investors and weaker rental income at some properties, adding to pressure on the group after it reported a £417m pre-tax loss in July. Unite, Britain s largest student accommodation provider, said 95.6 per cent of its beds have been sold for the 2026 to 2027 academic year, slightly ahead of last year s 95.3 per cent. However, targeted rent cuts to attract tenants mean like-for-like rental income grew just 0.6 per cent, with average annual rents falling 0.3 per cent. The company has been adjusting prices to boost occupancy, including in Nottingham