Government more supportive of Higher Education WHAT IT MEANS FOR UNITE STUDENTS • Potential for stronger growth in student numbers for those universities and cities delivering high-quality teaching, strong employment prospects for graduates and internationally recognised research. • We will grow our alignment to high-ranked universities to 80% of the portfolio from 67% today, aligning to universities which have the strongest outlook for student recruitment and demand for accommodation. • Further opportunities for strategic university partnerships for on- and off-campus development as well as the transfer of existing accommodation stock, requiring investment and repositioning. Focus on quality, sustainable housing The Building Safety Act (BSA), which addresses the safety of new residential accommodation, came into effect in 2024, adding three approval gateways to the design, construction and occupation of new high-rise residential buildings. This is adding around 12 months to delivery timelines as the new process becomes established. BSA Gateway 3 clearance is required ahead of occupation for our Hawthorne House project in Stratford for the 2026/27 academic year. The UK’s commitment to achieve net zero carbon by 2050 will require significant reductions in energy use from domestic properties. This includes potentially increasing Minimum Energy Efficiency Standards (MEES), requiring rental properties to achieve EPC ratings of at least B by 2030. The Government has a target to deliver 1.5 million new homes during this Parliament, built to the highest sustainability standards, and PBSA can make a contribution. The Renters’ Rights Act will increase tenants’ rights and aims to improve the standard of privately rented housing. It excludes PBSA from almost all of the new protections, when the landlord is accredited by a recognised code of practice. 2 3 WHAT IT MEANS FOR UNITE STUDENTS • Growing regulation, MEES and taxation of the HMO sector may result in more private landlords seeking to exit the market, creating the opportunity for the PBSA sector to capture a growing share of students requiring accommodation. • Extended development programmes have increased the delivery risk for new off-campus development. We will require a nomination agreement and higher returns in order to commit to new projects. The Government is focused on universities delivering high-quality education and value-for-money, and expects to see growing specialisation of universities in research and teaching. From 2027, a reduction in the post- study work visa from 24 to 18 months is expected to have a modest impact on international student numbers. The International Education Strategy reaffirmed the commitment to sustainable recruitment of high- quality international students and targets 25% growth in the value of education exports over four years. The new £925 p.a., per student, international fee levy will take effect from 2028 and is intended to fund grants for lower-income students. This will support access to university, with the strongest universities best placed to navigate the change. At the same time, other leading destinations for students are restricting access for international students, making the UK a relatively more attractive place to study. UK Higher Education Policy recognises the global standing of the UK’s universities which attract students from all over the world, conduct vital research, and contribute £42 billion to the UK economy and benefit our society. The Government increased tuition fees for the 2025/26 academic year for the first time since 2017/18 and expects to grow them in line with inflation going forward. This increase will help universities balance budgets in the face of rising staff and other costs. The Government’s Higher Education White Paper was supportive of the sector and recognised its importance in delivering the Government’s industrial strategy. THE UNITE GROUP PLC Annual Report and Accounts 2025 05