Unite predicts up to 20% rent hit
Student accommodation provider Unite has forecast a 10-20% drop in rental income for the 2020/21 academic year due to disruption caused by Covid-19.
Unite is suffering from delayed term starts, extended student check-ins and cancellations.
In a trading update, the group said the “resurgence of Covid-19 cases and changing nature of lockdown” had given it lower visibility over income.
Student accommodation provider Unite has forecast a 10-20% drop in rental income for the 2020/21 academic year due to disruption caused by Covid-19.
Unite is suffering from delayed term starts, extended student check-ins and cancellations.
In a trading update, the group said the “resurgence of Covid-19 cases and changing nature of lockdown” had given it lower visibility over income.
At 30 September the Unite Student Accommodation Fund property portfolio was valued at £2.8bn, representing a like-for-like increase of 0.7% during the quarter. The portfolio comprises 30,209 beds in 79 properties.
Its London Student Accommodation Joint Venture portfolio of 8,354 beds in London and Birmingham was valued at £1.325, also up by 0.7%. Unite attributed the valuation increases to the temporary reduction in stamp duty for residential properties. Without this, the portfolio value would have remained static over the period.
Chief executive Richard Smith said: “We are very aware of the challenges currently faced by students and are doing all we can to help keep them and our staff safe throughout this difficult period. While recognising that this is an evolving situation, all of our buildings remain open with a range of independently assessed Covid-secure measures in place.”
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