Unite Regulatory News (UTG)

On 13 December, 2012, UCAS confirmed final statistics on university acceptances for the 2012/13 academic year, the first year of higher tuition fees.

The results stated the well publicised 6.6% YoY decline in the number of applications from full-time UK undergraduates, as well as confirming a 5.5% YoY decline in acceptances.

Headline figures show that there were 54,000 fewer students starting university in 2012 compared to 2011, with the vast majority of this reduction among English applicants. The actual fall in acceptances compared with last year was 27,000 (slightly less than the 30,000 UNITE projected in its Interim Management Statement issued on 15 November 2012) with the remaining shortfall accounted for by deferrals and a small reduction in funded places.

Looking into the detail behind the figures suggests that the reduction in acceptances can largely be accounted for by cautious 'offer making' behaviour. Universities made fewer offers for the period, and were more likely to make offers to applicants who already held a number of other offers. UCAS modelling suggests that this accounts for a 26,000 reduction in acceptances - almost all of the shortfall. This provides further evidence to support our prediction that this trend is likely to be partially reversed in 2013, as Universities adapt their admissions processes to reflect the new policy environment more effectively.

Despite this backdrop, UNITE's occupancy level remains strong. Additionally UNITE remains well placed for the future due to its focus on strong University cities and the high volume of international students that stay in UNITE's accommodation, an area of the market that is expected to double by 2025(OECD).

Highest ever customer satisfaction:

Crucially in this sector success is built on strong University relationships and focus on customer service. UNITE has just received the results of its TNS global benchmark survey (a twice yearly customer satisfaction survey that is benchmarked against the retail and hospitality industry) and has exceeded its target, delivering the best customer satisfaction score in the business's 21 year history. The continuing focus on great customer service and investment in UNITE's properties will drive further improvement in the future.

Richard Smith, Managing Director of Operations, said: "We recognise that some students and their parents are now having to make a more significant economic investment in higher education, and we want to play our part in ensuring that they get the best out of this opportunity. We are proud of the achievements we have made this year, particularly in the service we provide our customers. We will continue to work towards ensuring that staying with UNITE will help students achieve future success."

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Notes to Editors:

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 42,000 students in over 130 properties across 23 of the UK's strongest university cities, and has consistently proven high occupancy levels across its portfolio.

The Group works closely with higher education institutions in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. In 2012 UNITE won the South West Business in the Community Carbon Reduction Award for its environmental initiatives and the Global Real Estate Sustainability Benchmark (GRESB) named UNITE as a regional sector leader for sustainability.

Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange (UTG). For more information, please visit www.unite-group.co.uk or www.unite-students.com.