Unite Group PLC on Monday said recent changes in UK immigration policy have not hurt demand for housing from international students, while it welcomed support for the university sector from the incoming Labour government.

Unite is a Bristol, England-based owner and manager of student accommodation.

Unite said it is confident in achieving 98% to 99% occupancy for the 2024-25 academic year, with 94% of rooms already reserved.

Rental growth is expected to be at least 7%, revised up from previous guidance of 6%.

Property values increased in the second quarter of the year, the company said. Up 3.2% to £2.93 billion for the Unite UK Student Accommodation Fund as of June 30 and up 2.8% to £2.00 billion for the London Student Accommodation Joint Venture.

Unite Students Chief Executive Officer Joe Lister said student demand remains strong from both domestic UK and international students.

Unite said 18% of its portfolio has been taken by international students, down marginally from 19% for the 2023-24 academic year.

‘We have not seen a meaningful impact from the removal of visas for family members of international postgraduate taught students, which reflects the single-occupancy nature of our properties,’ the company explained.

It added: ‘The Labour Party manifesto recognised the soft power and economic value of UK higher education and stated an ambition to improve access to university for a growing 18-year-old population.

‘Encouragingly, there is also recognition that university funding arrangements are not meeting the needs of students and universities and the new government has committed to creating a secure future for UK higher education.’

Unite Group shares were up 1.3% to 930.10 pence early Monday in London.

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