UCAS STUDENT APPLICATION NUMBERS

RNS Number : 4368W

Unite Group PLC

31 January 2012

 



31 January 2012

THE UNITE GROUP PLC

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

UCAS STUDENT APPLICATION NUMBERS - ANALYSIS FROM STUDENT ACCOMMODATION PERSPECTIVE

Yesterday, UCAS announced final student application numbers for the 2012/13 academic year; the first year in which higher tuition fees take effect. The results confirmed a 7.4% drop in applications and were firmly in line with UNITE's previously announced expectations of a 5-10% fall.

The reduction in applications means that 2012/13 applicant numbers are broadly in line with those of two years ago, for the 2010/11 academic year. At this level, demand for university places still outstrips supply by approximately 32% and means that more than 156,000 students applying to study in 2012 will fail to secure a place. Consequently we do not expect the decline in applications to translate into a reduction in actual student numbers. Based on our current reservations for 2012/13, which are in line with the same point in 2011, we remain confident of achieving rental growth of 3-4% for the year.

Within the overall numbers, applications from non-EU students, a key customer segment for UNITE, increased by 13.7%, demonstrating the continued appeal of UK Universities overseas. UNITE heavily over-indexes international students, particularly in its London portfolio, and this continuing trend supports the Group's business model and customer acquisition strategy.

There will be varying implications of the final applications outcome at a city and University level due to the various policy mechanisms introduced by the Government, such as the ring-fencing of students that achieve AAB or above at A-Level and incentives for Universities charging less than £7,500 per year for a degree course. These factors are generally expected to benefit those Universities with a stronger reputation, many of whom UNITE has a long-standing relationship with. This is further supported by UNITE's own research¹ conducted in December 2011 with 2012 applicants. This shows that the majority of school leavers still view university as an attractive proposition for the best chance of a secure future, with  79% of respondents stating their willingness to pay higher prices for good academic reputation, suggesting that students are still keen to select their university on its 'brand' or reputation,  rather than price.

_____________________

 ¹ UNITE Student Experience Research, December 2012

For further information, please contact:

The UNITE Group plc Paul Harris, Communications Director Sally Quigg, Head of Corporate Communications	Tel: [phone]
FTI Consulting Stephanie Highett Dido Laurimore Toyah Simpson	Tel: [phone]

UNITE Student Experience research:

·    The objective of the project was to explore expectations of the student experience among applicants for 2012 university entry in light of increased tuition fees

·    The survey was conducted online from 11 November to 31 December 2011, with a sample drawn from the users of The Student Room community website.

·    The definition of applicants was tightly defined and limited to those who:

a)   were still at school, studying A levels or other level 3 qualifications

b)   left school/college in 2010 but took a year out

c)   were aged 19 or under

d)   were intent on living away from their parental home whilst studying

·    A total sample size of 1,236 was achieved. Some respondents were screened out at an early stage, leaving a maximum sample of 771

For more information about the UNITE Student Experience Research visit our corporate website: www.unite-group.co.uk or contact Sally Quigg, [e-mail] or 0117 302 7070. 

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 40,000 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.uk or www.unite-students.com.

 

END

 

 

MSCDMGFMZGRGZZZ