GCP Student Living PLC (LON:DIGS) said tenants can apply for up to 100% rental concession for a six-week period if they aren’t using their rooms in that period.
The maximum loss would be £1.9mln, while total rental income for the year to June 30 was £48mln.
Students across the UK have been on rent strikes to protest against high university costs during the COVID-19 crisis, with many people stuck in yearly contracts even if they have not used their booked accommodations because of lockdown.
???? MORE THAN 45 UNIVERSITIES (and counting!) WILL BE RENT STRIKING THIS JANUARY ????
This is the biggest national student rent strike in history! If you are a student at any of these unis please get involved! ✊ pic.twitter.com/7jT43weVKc
— RENT STRIKE (@rentstrikenow) January 6, 2021
To be able to apply, GCP’s tenants will also have to be up to date with rent payments, including the payment of their rent for this term which was due on January 12.
The six-week ‘grace’ period begins on January 5, so the discount will be applied on the final instalment of the academic year due in April, which usually accounts for 20-30% of the total year’s rent.
The London-focused student accommodation owner said it continues “to carefully consider situations where the group's residents are suffering financial hardship on a case-by-case basis”.
“The Directors believe that this time-limited rental concession aligns the Group's rental policies with several of its competitors in the private student accommodation market,” the firm said in a statement.
“Importantly the Company's willingness to offer rental concessions demonstrates to students, the Group's current and future customers, that it continues to support them in this difficult period.”
Shares were unmoved at 144.57p on Friday afternoon.