Re HEFCE student number allocation

RNS Number : 7353V

Unite Group PLC

17 January 2013

 



Press Release 17 January 2013

THE UNITE GROUP PLC

('UNITE', the 'Group', or the 'Company')

GOVERNMENT CONFIRMS IMPROVEMENTS TO STUDENT NUMBER ALLOCATION PROCESS FOR 2013/14

On 14 January 2013, the Secretary of State for Business, Innovation and Skills and the Minister for Universities and Science confirmed 2013/14 funding allocations for Higher Education in a letter to the Higher Education Funding Council (HEFCE). This letter also confirmed some important changes to the process for allocating student places to Universities for 2013/14. We are confident these will lead to improved recruitment levels for the majority of Universities.

In the current environment, the process for allocating student places is a far more important determinant of final student intake than initial applications. This was clearly illustrated in the 2012/13 academic year, when there were over 185,000 unplaced applicants but a number of Universities reported unfilled places. The confirmed changes are intended to address this evident mismatch of demand and supply of places.

 The main new measures announced are as follows:

·     There will be no restriction on the number of students achieving ABB grades or better at A-level (or equivalent) that Universities can recruit. In 2012/13, this unrestricted pool was limited only to those achieving AAB grades or better. We estimate that this change will increase the size of this uncapped pool from 85,000 to approximately 120,000. Stronger Universities should be well positioned to benefit from this change.

·     Penalties for over-recruitment of students subject to number controls (ie excluding the uncapped pool) have been relaxed. Universities will now be permitted to over-recruit by 3% of their allocation without financial penalty whereas in 2012/13 Universities were effectively at risk of being fined for exceeding student number controls. We expect this to remove some of the caution Universities have previously exercised when deciding upon the number of offers to make to prospective students and it should therefore translate into improved recruitment levels.

·     Up to 5,000 additional University places will be made available, to be allocated flexibly.

Taken together with the impact of deferral rates stabilising, which we believe alone will contribute to an increase of between 15,000 and 20,000 students in 2013/14, we expect these new measures to remove much of the uncertainty surrounding University recruitment and contribute to meaningful student number growth for 2013/14. Stronger Universities, where UNITE's portfolio is largely focused, are particularly well placed to benefit.

ENDS

For further information, please contact:

The UNITE Group plc                                                               Tel: [phone]

Sophie Joyce, Head of Communications  

FTI Consulting                                                                         Tel: [phone]

Stephanie Highett

Dido Laurimore

Faye Walters     

About The UNITE Group 

The UNITE Group is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:

1.          Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in which it owns a 16.3% share. UNITE also manages a number of Joint Venture partnerships.

2.          Professional property management: UNITE is home to some 41,000 students and has consistently proven high occupancy levels across its portfolio.

UNITE works closely with universities and colleges, in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. 

Founded in 1991, UNITE is listed on the London Stock Exchange (UTG).

For more information, please visit www.unite-group.co.ukor www.unite-students.com.   

 

END

 

 

MSCEANFKFEPDEFF