Economic and financial conditions have remained challenging over the past year. Demand for Higher Education and student accommodation has historically proven to be well insulated from the economic cycle and the business mitigates the impact of rising costs through rental growth and its risk management approach. Inflation has returned to close to target levels and interest rates have begun to gradually reduce. The outlook is subdued with modest economic growth expected over the coming years, an increased tax burden and interest rates expected to remain elevated compared to the 2010s. Unemployment has risen, with a reduction in the number of graduate jobs available. The sector remains attractive to lenders, albeit at higher costs as underlying interest rates remain elevated. Higher rates were partially mitigated by tighter credit spreads, though new funding remains at a premium compared to the late 2010s. 4 Economic outlook WHAT IT MEANS FOR UNITE STUDENTS • A weaker jobs market will cause students to further focus on the quality of their university and course. It may also lead to an increase in postgraduate study as students seek to differentiate themselves from their peers. This will support recruitment at the strongest universities which we are increasingly aligned to. • Slowing inflation will be reflected in lower annual uplifts in our multi-year nomination agreements and a moderating rate of overall rent and cost growth. • We will monitor the affordability of our accommodation to ensure we continue to offer value-for- money accommodation. Continued investment in our assets and service supports value-for-money and sustainable rental growth. Universities have responded to changing international demand since 2024 by increasing recruitment of UK students. This is most stark at Higher Tariff universities where UCAS acceptances increased by 8% for the 2025/26 academic year, compared to 2% growth at Medium Tariff and a 2% reduction at Low Tariff providers. Changing student recruitment patterns resulted in weaker demand in a handful of regional cities and contributed to our 95.2% occupancy for the 2025/26 academic year. UK students are focused on value-for- money, with a growing trend of those at lower-ranked universities likely to live at home. The most enduring accommodation demand is at the strongest universities, where we are increasing our alignment. International students are increasingly focused on quality of education and alternatives outside of the traditional leading study destinations. This is mitigated by the UK’s more settled international student policy and openess compared to the US, Australia and Canada. WHAT IT MEANS FOR UNITE STUDENTS • We will accelerate the alignment of our portfolio to the strongest universities which have the best prospects for student recruitment and demand for accommodation. • Shifting demand underlines the value of our nomination agreements and relationships with universities, which underpins sales each academic year. • Universities needing new accommodation to grow are increasingly seeking to partner with the private sector, including Unite Students, creating opportunities for new nomination agreements and university joint ventures. 5 University recruitment THE UNITE GROUP PLC Annual Report and Accounts 2025 06 STRATEGIC REPORT