Unite warns of student accommodation shortage
London land prices are still too high to address the crisis in student accommodation, the boss of property developer Unite has warned.
Chief executive Richard Smith said values dipped ahead of the EU referendum in central London, “but since then we have not seen it spread to Zones 2 and 3, where we want to invest”.
Prices are still around 10% above what the firm wants to pay.
The developer, which has 49,000 beds across Britain, warned that London freshers will face a scramble for accommodation this year because demand exceeds supply.
Unite, which has 27 properties in the capital, including in Tottenham Hale and Stratford, saw rental income rise 3.8% in 2016. It lifted its full-year dividend by 20%.
The firm has benefited from students shunning crumbling digs seen in shows like Fresh Meat, in favour of more upmarket accommodation with gyms and en-suite bedrooms.
Pre-tax profits at the company dropped to £201.4 million from £388.4 million, owing to much smaller rises in property values than in previous years.
