…By for TDPel Media.
The Unite Group, a leading student accommodation provider, has successfully raised funds for two new developments in Stratford and Bristol.
The properties, comprising a 952-bed facility in Stratford and a 614-bed property in Bristol, are expected to alleviate the current shortage of student housing caused by several factors, including regulatory changes and rising mortgage rates.
Unite’s CEO, Richard Smith, has been vocal about these challenges and hopes that the new developments will help address the pressing housing needs of students.
Challenges in the Student Housing Sector:
Richard Smith has been warning about the difficulties in the student housing sector due to new regulations and soaring mortgage rates.
The exit of Houses in Multiple Occupation (HMO) landlords from the market has further exacerbated the housing shortage.
As a result, students may face the prospect of living much farther away from their universities than originally planned.
This situation has created a sense of urgency among students seeking accommodation for the upcoming 2023-24 academic year.
Concerns Over Location Availability:
With Unite’s existing properties already fully booked for the upcoming academic year, students may struggle to find suitable accommodation in their preferred locations.
Richard Smith anticipates that some students might be forced to secure housing in neighboring towns due to the scarcity of available options.
This trend was observed in the previous year, and the company expects similar challenges to persist, leading to an increased awareness of the urgency in securing accommodation.
Retail Investors Participate in Fundraising:
A notable aspect of Unite Group’s recent fundraising is the inclusion of retail investors, marking a first for the business.
Investment platform PrimaryBid facilitated this involvement, allowing both new and existing shareholders the opportunity to participate in the fundraising initiative.
James Deal, PrimaryBid’s head of the UK, commended Unite Group for recognizing the importance of rewarding long-standing investors and enabling their participation with ease through technology.
Unite Group’s successful fundraising for its new student housing developments comes as a significant step towards addressing the pressing housing shortage for students.
As regulatory changes and mortgage rate increases continue to impact on the sector, the company’s efforts to expand accommodation options are commendable.
However, the high demand for student housing and the full occupancy of existing properties indicate the need for continued action to ensure that students can find suitable accommodation in proximity to their universities.