UK-based student accommodation provider Unite Group has announced a delay in the construction timeline for new student accommodation by approximately six months.

This move comes after the UK government introduced the Building Safety Act (BSA).

“Our development programmes reflect the expected impact of the BSA, which will add around six months to delivery timelines for new student accommodation due to new approval gateways,” the company said.

In a trading update, Unite Group noted that the company has sold 66% of beds for the 2025-26 academic year, with occupancy projected to be between 97% and 98%.

Rental growth is expected to range from 4% to 5%.

The outlook for student numbers in 2025-26 is positive, the company said, adding that a 2% increase in the population of UK 18-year-olds is driving domestic demand.

Unite Group has also announced the development of eight projects, which will add 6,600 beds to its portfolio.

The company has effectively advanced in deploying the proceeds from £450m ($550.76m) in equity raised to meet its investment goals.

Over the last quarter, the company has made several strategic moves, including the acquisition of seven assets from USAF, the sale of two assets, and the purchase of land for its Central Quay scheme in Glasgow, Scotland.

Additionally, in November 2024, the company acquired the freehold interest of a 260-bed property in London, UK, for £37m.

Unite Students (a part of Unite Group) CEO Joe Lister said: “We have seen a strong start to the 2025-26 sales cycle, highlighting the continued demand for our high-quality accommodation from both students and universities. 

“The outlook for student numbers remains positive with a growing UK 18-year-old population and improving trends in international student recruitment given a more settled policy backdrop in recent months. This supports our confidence in delivering full occupancy and rental growth of 4-5% for the 2025-26 academic year.”