THE UNITE GROUP PLC Annual Report and Accounts 2024 06 MARKET OVERVIEW STRATEGIC REPORT Market trends A record number of UK 18-year-olds started university in September 2024, reflecting the continued value young adults place on a higher level of education and the life experience and opportunities it offers. Growing demand for Higher Education The number of 18-year-olds will increase through demographic growth and this supports continued growth in demand for university places to 2030. The outlook for international recruitment is improving following a c.15% reduction in visas issued to international students in 2024. The new government is more supportive of both the Higher Education sector and international recruitment, supporting future growth in student numbers. Other leading HE destinations, including Canada and Australia, are introducing caps to reduce the number of international students, which we expect to increase the attractiveness of UK universities. WHAT IT MEANS FOR UNITE STUDENTS • Increased demand for PBSA from students and university partners. • Opportunities for new development in cities benefiting from the strongest growth in student numbers. 1 Cyclical factors also have an impact on the economic conditions we face, the cost and availability of funding for the business and the level of investment in student accommodation. Together these factors influence our strategy and the long-term growth prospects of the Group. STRUCTURAL TRENDS Demand for purpose-built student accommodation (PBSA) is underpinned by a range of structural drivers, which support growth in student numbers for UK Higher Education, explored in more detail in the following tables. The outlook for our business is influenced by structural trends in Higher Education and student accommodation, which determine the size of our market.