Student rooms builder cancels London and defers Bristol projects

The nation’s largest scholar lodging developer this morning mentioned it had deferred supply of its 500-bed Freestone Island scheme in Bristol whereas it explores choices to safe “finest worth” from the undertaking.

The transfer releases round £55m of capital that had been earmarked for development.

The group has additionally walked away from its flagship £147m TP Paddington scheme in London, regardless of securing planning permission on enchantment.

It mentioned this morning that the 605-bed undertaking was not financially viable in opposition to Unite’s return hurdles, with an prolonged supply programme compounding the challenges confronted by the massive undertaking.

Unite mentioned the choice to desert the undertaking would result in a £10m distinctive write-off of planning prices.

In a year-end buying and selling replace, chief government Joe Lister mentioned the enterprise was nonetheless buying and selling according to expectations, regardless of a slower begin to the subsequent gross sales cycle.

“Gross sales progress thus far is in line with our steerage for occupancy of 93–96% and rental progress of two–3% for the 2026/27 tutorial yr,” he mentioned.

“Our conversations with our college companions present continued demand for our high-quality, value-for-money lodging, however a slower begin to the 2026/27 gross sales cycle.”

Alongside the event pullback, Unite has unveiled a £100m share buyback, funded initially by means of lowered off-campus growth exercise.

Lister mentioned: “In line with the revised capital allocation coverage, we’re right this moment launching a £100m share buyback programme to return surplus capital to shareholders.

“This can initially be funded by means of lowered off-campus growth exercise, which maintains our high-quality steadiness sheet.”

He added that the group would proceed to speculate selectively the place risk-adjusted returns stack up, with additional surplus capital anticipated as deliberate asset disposals progress.

The revised technique underlines a wider slowdown in new PBSA provide throughout the UK, with Unite pointing to worsening scheme economics and regulatory drag.

The developer mentioned viable new schemes now require minimal rents of round £230 per week, whereas Constructing Security Act gateways have been including six to 12 months to supply programmes.

Freestone Island Temple Meads undertaking was caught up within the Constructing Security Regulator logjam for almost a yr.

Planning exercise has additionally dried up, with 2025 seeing the bottom variety of PBSA planning submissions prior to now 5 years.

Trade information from CBRE, Cushman & Wakefield and Unite reveals web new provide progress falling sharply, with deliveries in 2026 amounting to only a low-single-digit share of current inventory and additional easing anticipated into 2027.

Unite mentioned its focus was now firmly on operational efficiency and capital self-discipline, which it believed would help a return to earnings progress from 2027.