Unite Reshapes Student Housing Strategy as Build Costs Stall New PBSA Development
The UK’s largest purpose-built student accommodation (PBSA) provider is embarking on a major strategic overhaul, with plans to dispose of up to 20,000 student beds while warning that rising construction costs are threatening the delivery of new developments across the sector. Unite Group has confirmed it intends to streamline its portfolio, reducing its holdings from around 72,000 beds to approximately 55,000 beds across 20 key university cities. The move follows its acquisition of Empiric and reflects a growing focus on the UK’s highest-performing universities, where student demand continues to strengthen despite wider challenges facing the higher education sector. The company has already completed around £190 million of property disposals this year and now expects total sales to reach approximately £400 million, with proceeds supporting its wider investment strategy and share buyback programme. The portfolio reshaping comes at a time when many universities are facing financial pressures and softer student demand, particularly outside the country’s leading institutions. In contrast, applications to so-called high-tariff universities continue to grow, prompting Unite to concentrate future investment around locations with stronger long-term occupancy prospects. Alongside its portfolio review, Unite has issued a stark warning over the future pipeline of student accommodation developments, highlighting that soaring construction costs, more stringent building regulations and weaker investment values have made many new schemes financially unviable. According to the company, developments outside London now require weekly rents of more than £300 to achieve acceptable returns, compared with Unite’s current average regional rent of around £190 per week. The same economic pressures are also affecting the Build-to-Rent sector, where viability challenges are slowing the delivery of new residential developments across many parts of the UK. Despite these headwinds, Unite expects demand for high-quality student accommodation to remain resilient. A combination of fewer new developments, older PBSA schemes leaving the market and continued reductions in private rented housing available to students is expected to tighten supply over the coming years. Construction activity continues on two major off-campus developments. Hawthorne House in Stratford, providing 719 student beds, has now reached practical completion and is awaiting Building Safety Regulator approval before opening for the 2026/27 academic year. Meanwhile, the 934-bed Central Quay development in Glasgow remains on schedule for completion in 2027. The company is also reviewing plans for a further 2,400 consented beds across London and Bristol, with options including revised funding arrangements, joint venture partners or potential disposal depending on market conditions. Future growth is expected to be increasingly focused on partnerships with universities themselves. Unite has already committed to delivering more than 4,300 additional student beds through on-campus joint ventures, including the Castle Leazes redevelopment in Newcastle and Cambridge Hall in Manchester. For the construction and property sectors, Unite’s latest strategy reflects the changing dynamics of the PBSA market. While demand for student accommodation remains robust in key university locations, escalating construction costs, tighter regulatory requirements and shifting investment returns are reshaping development priorities, with greater emphasis on long-term partnerships, asset optimisation and selective investment in high-demand markets. The company also confirmed it expects to invest a further £61 million in fire safety remediation works over the next two years as part of its ongoing building improvement programme. Unite anticipates recovering between 50% and 75% of total cladding remediation costs through claims against contractors, although reimbursements are expected to follow after the remediation works have been completed. As the sector adapts to changing economic conditions, Unite’s strategy signals a significant shift towards portfolio quality over scale, reinforcing the importance of targeting resilient university markets while navigating one of the most challenging development environments the PBSA sector has experienced in recent years. Building, Design & Construction Magazine | The Choice of Industry Professionals
Vistry and Abri agree forward sale of 141 homes at Fordham, unlocking delivery of 1,500 home masterplan
Vistry, the UK’s leading provider of mixed-tenure homes, and Abri, a large housing provider operating across the south of England, have reached a key milestone at their 1,500-home Fordham development in West Sussex, agreeing the forward sale of 141 affordable homes to Abri through their joint venture, Ford North LLP. The transaction is for 76 Section 106 affordable homes and a further 65 affordable homes, which Abri plan to develop with support through grant funding from Homes England, the government’s housing and regeneration agency. These homes will be delivered as part of Phase 1 of the scheme. Crucially, the forward sale enables the commencement of the housing phase at Fordham, marking the transition from planning to delivery of this major new community, with construction anticipated to start in September 2026. Ford North LLP, the joint venture between Vistry and Abri, is leading the delivery of the wider scheme, with Abri also acting as the end purchaser for the affordable homes within this first phase. The agreement demonstrates the strength and flexibility of the partnership, enabling both organisations to accelerate the delivery of much-needed homes. Fordham is a landmark mixed-use development on the former Ford Airfield site, which will deliver around 1,500 high-quality new homes alongside extensive infrastructure and community facilities. Of these, 960 homes are being delivered through the Vistry and Abri joint venture. Planning approval has already been secured from Arun District Council for the initial phases of development, including nearly 700 homes and significant infrastructure. This includes a primary spine road, new pedestrian and cycle routes, bus connectivity, and more than 11 hectares of public open space, alongside play areas, sustainable drainage systems and ecological enhancements. The wider development will also feature a new primary school, a care home, a local centre and employment space, creating a sustainable and well-connected neighbourhood. The vision for Fordham has been shaped by more than a decade of collaboration with local partners and is a key strategic allocation within the Arun District Local Plan. Alex Jordan, Managing Director for Vistry South East, said: “This forward sale represents a major milestone for Fordham and, importantly, enables us to begin delivering new homes on site. Our partnership with Abri is central to the success of this scheme, and this agreement highlights how our joint venture model can accelerate delivery while maintaining a strong focus on quality and place-making. “Fordham is a transformational development that will provide not just new homes, but the infrastructure and community facilities needed to support long-term, sustainable growth.” Sally Ingham, Director of Development at Abri, commented: “This agreement secures a significant number of affordable homes for Abri customers and marks the next stage of delivery at Fordham, transforming a long-held vision into a new community with homes, green spaces, transport links and facilities for local people. The inclusion of additional homes that we plan to develop with support from Homes England grant funding will help maximise the affordable housing provision delivered through the development. “Our long-standing partnership with Vistry demonstrates what can be achieved when organisations work together. Fordham is a great example of how collaborative working can unlock large scale developments, helping us deliver the homes and communities needed while supporting Abri’s ambition to build 20,000 new homes by 2036.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Jones Hargreaves marks strong H1 with completion of 3 Embankment refurbishment
Jones Hargreaves, the national commercial building, project and sustainability consultancy, has completed the project management of 3 Embankment, a five-storey Grade A office refurbishment in Leeds city centre. Located on Sovereign Street in Leeds’ Southbank, the brick-fronted building has been comprehensively refurbished to create high-quality, contemporary workspace. The scheme features a striking reception, business lounge and upgraded communal areas, with suites ranging from 2,507 sq ft to 33,281 sq ft. Jones Hargreaves delivered the six-month project on behalf of UKRO, working alongside RU Creative, Adapt Real Estate and Time Limit Interiors. Other projects completed by Jones Hargreaves during the first half of 2026 include a variety of landlord and tenant-led office refurbishments together with the £1.6m refurbishment of Robin Hood Industrial State, Nottingham, for Hines. The office refurbishment projects reflect a growing trend across the UK, with landlords increasingly investing in the refurbishment of existing office buildings to deliver the high-quality, sustainable workspace occupiers are seeking. Avison Young reports that refurbishment projects now account for the majority of office development pipelines across the UK’s nine largest regional office markets, with refurbishment space increasing 12% year-on-year. The recent project completions cap a busy first half of 2026 for Jones Hargreaves. Between January and June, the consultancy delivered 540 instructions nationally, including more than 5,000 onsite inspections covering ESG, building surveys, project management and dilapidations. The business also welcomed six new team members during the first half of the year, taking its headcount to 59 across offices in Birmingham, Bristol, Cardiff, Glasgow, Leeds, London and Manchester. The team in Manchester have recently moved to bigger premises to support future growth of Jones Hargreaves in the North West. During the same period, several graduates achieved Chartered Surveyor status after successfully completing their APCs. The team will also welcome back Abi Colling in August following the completion of her degree at the University of Reading, where she received the CIOB Certificate of Excellence for achieving the highest mark in her final year. Three other new graduate recruits are also set to join in late summer. Matthew Jones, Founding Partner at Jones Hargreaves, said: “The completion of 3 Embankment reflects the type of projects we’re increasingly delivering for investors, landlords and occupiers looking to reposition existing assets. Our joined up approach combining core Building Surveying, MEP and energy consultancy delivers real benefits for our clients. “Combined with the growth of our team and the volume of instructions we’ve completed in the first half of the year, it has been a positive period for the business. We’re grateful to our clients for their continued confidence and are looking forward to building on this momentum during the second half of 2026.” Jones Hargreaves’ expert multi-disciplinary team of building surveyors, ESG consultants and electrical & mechanical engineers advise on a range of commercial assets spanning predominantly industrial, office and retail space. With a number of large-scale retained clients, Jones Hargreaves is astute in delivering building projects together with dilapidations, TDDs, ESG work and much more. Established by founders Matthew Jones and Peter Hargreaves, and joined by Managing Partner, Matt Williams, the consultancy is a growing business which has a commitment to investing in its team and the next generation of the property industry. For more information, visit www.joneshargreaves.co.uk Building, Design & Construction Magazine | The Choice of Industry Professionals
Savills Strengthens Prime London Presence with Sloane Street Office Consolidation
Savills has strengthened its prime central London residential operations by bringing together several of its key sales and lettings teams under one roof, reinforcing collaboration across some of the capital’s most prestigious property markets. The property consultancy has relocated its Knightsbridge residential sales and lettings teams to its flagship office at 139 Sloane Street, creating a central hub for its prime residential business covering Chelsea, Knightsbridge, Belgravia and Mayfair. The move forms part of a wider operational consolidation strategy designed to enhance collaboration between specialist teams while providing clients with access to a broader range of expertise from a single location. Sloane Street, Savills’ largest and longest-established residential office in central London, now brings together residential sales, lettings and specialist advisory services within one of the capital’s most sought-after property districts. While the Knightsbridge lettings team will continue to operate under its existing brand and retain responsibility for the same geographical area, its relocation will allow closer day-to-day collaboration with colleagues across the wider Prime Central London business. The office also accommodates Savills’ London Private Office and Super Prime Lettings team, creating a comprehensive residential property hub serving domestic and international buyers, investors, landlords and tenants across London’s luxury housing market. For the residential property sector, the consolidation reflects an increasing focus on integrated client services, where sales, lettings and specialist advisory teams work more closely together to meet the evolving needs of high-net-worth individuals and institutional investors operating within Prime Central London. Richard Gutteridge, Head of Prime Central London and Head of the Sloane Street office, said: “We are delighted to be bringing everyone together under one roof. Having everyone back home at Sloane Street marks an exciting new chapter for the business, and increased collaboration will enable us to continue delivering the market-leading service our clients expect. With the Private Office and Super Prime Lettings team on hand, there will be even closer alignment across the whole of Prime Central London.” Georgina Bartlett, Head of Sloane Street Lettings, added: “We are very much looking forward to welcoming our colleagues to Sloane Street. Our personal approach and commitment to clients are second to none, and bringing our teams together will further strengthen communication, collaboration and the service we provide. This move creates an exceptional platform from which to support clients across some of London’s most sought-after residential markets.” The consolidation marks another step in Savills’ long-term investment in its Prime Central London operations, positioning its flagship Sloane Street office as a key destination for residential sales, lettings and advisory services while strengthening the firm’s presence across the capital’s luxury property market. Building, Design & Construction Magazine | The Choice of Industry Professionals
CBRE Investment Management and Moda Complete Seed Acquisition for UK Single Family Housing Partners
CBRE Investment Management (“CBRE IM”), on behalf of CBRE UK Single Family Housing Partners (“SFHP”), has completed the acquisition of a 222-home single family housing portfolio in the South East of England from UK housebuilder, Bellway. The transaction represents the seed investment for CBRE IM’s newly launched SFHP strategy, established in partnership with Moda Living. The platform is focused on delivering and operating high-quality, professionally managed family rental homes in structurally undersupplied UK markets, providing investors with access to a growing and resilient residential segment. The portfolio comprises a mix of completed homes and forward-funded development across three sites in established residential markets: Stevenage, Milton Keynes and Burgess Hill. All homes are expected to be delivered by the end of 2027. The sites all have excellent access to high quality transport links, proximity to major employment centres, schooling and attractive local amenities. The developments will deliver predominantly two- and three-bedroom homes, with a layout and specifications aligned to the needs of family renters and long-term occupiers. Homes within the portfolio will be operated by CBRE IM’s partner, Moda Living. Tom James, Head of UK Transactions at CBRE Investment Management, said: “This is an exciting addition to our residential platform and a great first step in growing our single family housing fund, delivering high-quality houses on attractive sites in locations where demand for best-in-class, professionally managed rental housing continues to outstrip supply. Working alongside Moda Living, we are building a platform designed to deliver at scale, both in terms of operational execution and investor outcomes, focused on homes that meet the evolving needs of renters and generate sustainable income over time.” Johnny Caddick, CEO of Moda Living, commented: “These first acquisitions are an important milestone for the platform and reflect the progress we’ve made since launching the partnership earlier this year. “Demand for professionally managed rental homes continues to outstrip supply and, with the backing of committed, long-term capital and Moda’s integrated development and operational platform, we’re well placed to help address that challenge. We’re looking forward to building on this strong start as we continue to grow the platform by utilising Moda’s delivery and operational capabilities – together with the wider Caddick Group land pipeline – to deliver more high-quality homes across the UK.” Ian Gorst, Regional Chair, Bellway Homes, said: “We are delighted to have completed this portfolio transaction with CBRE IM and Moda as they launch their new UK Single Family BTR Fund. Their investment in Whitehouse Gardens, Milton Keynes, Forster Park, Stevenage, and Fallow Wood View, Burgess Hill demonstrates confidence in the strength of these outstanding new communities. We are proud they have chosen Bellway as their delivery partner, recognising our proven HBF 5-Star homebuilder track record for quality and customer satisfaction. We wish CBRE IM and Moda every success with this exciting new venture and look forward to building on our relationship in the years ahead.” The acquisition follows the recent launch of CBRE UK Single Family Housing Partners, a dedicated single family housing strategy established by CBRE IM in partnership with Moda Living, part of Caddick Group. Backed by an initial £400 million available capital and supported by core, long-term investor capital, the strategy has a clear ambition to grow to £2 billion in value over time. The platform is designed to address the growing demand for high-quality rental homes while providing investors with access to one of the UK’s most compelling residential sectors. TT&G Partners and CBRE advised CBRE IM, and Savills advised Bellway. Building, Design & Construction Magazine | The Choice of Industry Professionals
Developer confidence deteriorates further as specialist finance becomes increasingly critical
Jonathan Samuels, CEO of specialist lender, Octane Capital, believes that continued economic uncertainty has further weakened confidence across the UK development sector during the second quarter of 2026, with developers becoming increasingly reliant on specialist finance to help navigate a more challenging market. The quarterly survey, commissioned by Octane Capital, tracks how developer sentiment, project appetite and reliance on specialist finance are shifting as market conditions evolve. The latest research shows that just 23% of developers now believe UK property market conditions will improve during 2026, down from 35% in the previous quarter, with more than three quarters (77%) now expecting conditions to remain challenging. As confidence has deteriorated, reliance on specialist finance has continued to strengthen. More than four in five developers (83%) now say they expect to utilise specialist finance to help navigate current market conditions, up from 72% in Q1. Bridging finance remains the most widely expected specialist lending product, with expected usage increasing from 40% to 44% quarter-on-quarter. Development finance has also seen an increase in demand, rising from 24% to 29%. The survey also suggests that developers are becoming increasingly cautious when it comes to progressing new projects. Whilst the proportion more likely to break ground on development or investment projects remained unchanged at 20%, the number stating they are less likely to proceed has climbed sharply from 37% to 57%. At the same time, the proportion expecting activity levels to remain broadly unchanged has almost halved, falling from 43% to 23%. This more cautious outlook reflects the continued challenges facing the sector, with almost all developers surveyed (97%) stating that obstacles remain within the current market. High build and labour costs remain the most significant challenge, cited by 35% of respondents, whilst concern around planning delays and uncertainty has increased notably to 29%, making it the second biggest barrier to development activity. Despite the weakening outlook, developers continue to believe that improvements to the lending environment could help unlock activity. Falling interest rates were identified as the single biggest factor that could improve market conditions (23%), followed by improved lender confidence (20%) and greater availability of finance (16%). The findings suggest that whilst confidence has weakened further, developers remain focused on progressing opportunities where possible, increasingly looking towards specialist lenders capable of providing the speed, flexibility and certainty required to navigate today’s more complex market. Jonathan Samuels, CEO of Octane Capital, commented: “The second quarter has seen confidence soften further, with developers clearly becoming more cautious about both current market conditions and the prospects for the remainder of the year. Build costs remain stubbornly high, planning delays continue to frustrate development activity, and wider economic uncertainty is making it increasingly difficult for developers to commit to new projects with confidence. At the same time, we’re seeing specialist finance become more important than ever. The continued increase in demand reflects the fact that developers still want to transact, but they’re increasingly looking for lenders that can provide the speed, flexibility and certainty needed to navigate a far more complex market. Whilst sentiment has undoubtedly weakened, opportunities still exist for those able to move decisively, and that’s exactly where specialist finance continues to play such an important role.” Data Tables and Sources Building, Design & Construction Magazine | The Choice of Industry Professionals