STUDENT HOUSING GIANT SCRAPS LONDON DEVELOPMENT AFTER VISA CRACKDOWN
A student housing giant has abandoned plans to build hundreds of flats in central London after a crackdown on visas for overseas graduates.
Unite, which is Britain’s biggest student landlord, has scrapped the £147m canal-side scheme in Paddington despite securing planning permission last year.
It said the project, consisting of 605 bedrooms, was no longer “financially viable” as it would make insufficient profit for the developer.
The move follows tougher visa requirements for international students coming to the UK as Labour pushes to cut immigration.
Under changes announced last year, universities face a levy on income from international student fees, and tighter restrictions on how long students can stay and work in the UK after they graduate.
Joe Lister, the Unite boss, said there had been a “greater focus” from universities on attracting UK undergraduates, which was changing the landscape.
He said universities had a “more cautious approach” and had delayed signing new lettings contracts while they take stock of their numbers ahead of the UCAS application deadline later this month.
“We’re seeing the impact of the financial pressures on universities – they are less willing to take on financial risk. They just don’t want to be left with void rooms that they have to pay for,” he said.
Unite has also pushed back delivery of a 500-bedroom project in Bristol, saying it needed to explore “options to secure best value”.
Student demand is showing signs of a slowdown. Unite said it has sold 64pc of beds so far for the next academic year, down from 67pc during the previous year.
Rival landlord Empiric Student Property, which Unite is in the process of buying in a £634m takeover, said in November it had experienced a slowdown in demand from Chinese students.
Duncan Garood, the chief executive, said at the time that geopolitical tensions had played a part in this decline.
It comes as figures issued by the Home Office this week showed that net migration was on course to hit a 20-year low, with the number of foreign workers coming to the UK dropping by more than 100,000 in a year during 2024.
While student and seasonal worker applicants stayed flat, the number of dependents fell.
The value of Unite’s properties has slipped, with its main student housing fund down 0.7pc to £2.8bn.
Unite is using the money saved from less construction to fund a £100m share buyback.
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