Major landlord Unite Students warns on under supply of accommodation as reservations soar
Unite Students, which provides homes for almost 75,000 people at college in 23 cities in the UK, warned today that the supply of multiple-occupancy housing in the country is being outstripped by demand as private landlords desert the market.
The London-listed company said bookings for next academic year were at 90%, with “reservations significantly ahead of recent sales cycles”, leaving it on track for rental growth of 6% to 7%. This time last year, bookings were at 78%.
Unite, which runs the Stratford ONE accodomation in the capital as well asSt Pancras Way and Hayloft Point in Aldgate, also said it was committed to four development schemes totalling £339 million in costs.
Its portfolio was valued at £1.9 billion, down 0.1% on a like-for-like basis during the quarter ended on March 31.
Richard Smith, chief executive officer, said: “The supply of purpose-built student accommodation cannot keep pace with growing student demand at the same time as … landlords are leaving the sector.”
US inflation and Fed minutes in focus, FTSE 100 seen flat
Any cheer over an expected drop in the headline US inflation rate to 5.2% for March is today expected to be offset by the latest reading for core prices.
This is likely to have crept up to 5.6% on an annual basis, adding pressure on the Federal Reserve to hike interest rates by another 0.25% next month.
As well as this afternoon’s inflation print, US traders will be studying tonight’s release of minutes from the Fed’s most recent policy meeting.
The decision to hike rates by another 0.25% was made as the US banking system went through major turbulence due to the troubles of the Silicon Valley and Signature banks.
The increased expectations for another rate hike in three weeks’ time meant Wall Street technology stock came under pressure yesterday, with the Nasdaq Composite down 0.4% and the FANG+ index of mega-cap stocks 1.45% lower.
The S&P 500 index closed flat as investors held their positions ahead of today’s inflation reading, which is expected to show the lowest headline figure since May 2021. The rate currently stands at 6%.
CMC Markets sees the FTSE 100 index opening five points lower at 7780 this morning, having risen by 0.6% in yesterday’s session.
De La Rue seeks to amend lending arrangements and defer pension contributions amid profit warning
De La Rue is seeking to amend the terms of its loans and defer pension contributions after it sounded the alarm on its expected profits.
The Basingstoke-based banknote printer said its expected profits would be below market expectations as it warned: “the demand for banknotes has been at the lowest levels for over 20 years.”
De La Rue said: “The Company is in discussions with its lending banks in relation to seeking an amendment to its banking covenants, reflecting the revised outlook and also reflecting the increase in the Company’s funding costs resulting from higher Bank of England base rates.
“The Company is also in conversations with the Trustee of the De La Rue Pension Scheme and has officially requested a deferral of the next £18.75m of deficit repair contributions.”
Recap: Yesterday’s top stories
Good morning. Here are yesterday’s top stories:
