Shares in student housing provider Unite tumble as soaring cost of university hits business
Shares in student housing provider Unite Group tumbled by as much as 10 per cent as it warned that the rising cost of university is hitting business.The FTSE 250 company said annual earnings could fall by up to 13 per cent this year as British students opt to live at home rather than rent to cut costs and tighter visa rules dent demand among international student numbers.The update came amid mounting concerns over whether university offers value for money given bleak job prospects and ballooning debts that students take on.Official figures last week showed youth unemployment has raced to an 11-year high of 16.1 per cent under Labour while a report this week revealed graduate job opportunities have crashed to a record low. The rising cost of university and lack of job opportunities for graduates is causing alarmThere are now fewer than 10,000 tailor-made roles being advertised for graduates, according to jobs website Adzuna, the first time it has fallen below this level since it started tracking the figures in 2016.Graduate job vacancies have fallen by 45 per cent in the past year and nearly 60 per cent since Rachel Reeves’ first Budget, when her £25billion national insurance tax raid pushed up the cost of taking on staff.With the minimum wage for 18 to 20-year-olds soaring and employers grappling with new rights for workers, economists warn youngsters are being priced out of the jobs market.Shadow Chancellor Sir Mel Stride accused the Chancellor of ‘engineering a graduate jobs apocalypse’.Unite Group reported occupancy of 95.2 per cent for the 2025-26 academic year, down from 97.5 per cent in the previous year.And the firm said the expected fall in earnings this year related in particular to its Empiric business, which it bought in January and is focused on post-graduate housing.‘We've seen the overall cost of education increasing in the UK relative to some competing markets, particularly within Asia, and so that has led to a reduction in the numbers of international postgraduates,’ said Unite Group chief executive Joe Lister.Shares fell 10 per cent in early trading. Universities are seeking to boost recruitment for three-year undergraduate courses to offset the reduced number of international postgraduates, which could help Unite's revenues.Analysts, however, anticipated recovery would be hard.‘We believe the weaker operational market will make it tough for the group to bounce back,’ said Barclays analysts in a note.AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Shares in student housing provider Unite tumble as soaring cost of university hits business
