A university accommodation company is introducing an above-inflation hike to its rents as hordes of students received their first choice offer.
Empiric Student Property PLC (LSE:ESP) confirmed an average rent increase of 10.5% for the first half of 2024, with further increases anticipated for the upcoming academic year.
The student accommodation provider, which rents out 8,000 beds across the UK under its Hello Student brand, reported that 92% of its beds have already been sold for the new academic year.
Occupancy is expected to surpass 97%, Empiric added.
The rent increases are partly attributed to extensive refurbishments, particularly in Southampton, where rents have risen by 50% following renovations.
Duncan Garrood, Empiric’s chief executive, said: “We’re spending a lot of money on refurbishing rooms, as a result of which prices go up a little bit more because we’re offering a better product.”
Empiric expects to continue imposing above-inflation rent increases, driven by strong demand and a limited supply of student accommodations.
Despite a reported decline in international student numbers, the company remains serving higher-tariff universities in key cities, which continue to attract significant interest from students.
Donald Grant, Empiric’s chief financial officer, added: “Higher-tariff universities have increasing applications, whereas lower-tariff universities have seen quite a fall.”