Student accommodation specialist Unite has announced a rent discount for students following the latest lockdown in the UK.
It said its student tenants will be able to apply for a discount of 50% of their rent for a total of four weeks and, in addition, will be given a four-week complimentary extension of their tenancy agreement at the end of the academic year to extend their stay into the summer.
The loss of rental income to the company due to the rental discount and tenancy extension is expected to result in a reduction to EPRA earnings per share (EPS) of up to £8m or 2 pence for the 2021 financial year.
Unite said it expects to maintain compliance with all debt covenants following the move and that it retains significant headroom against all of its debt covenants.
Richard Smith, Unite Students chief executive, said: “The new rent discount recognises the challenges and disruption that students face following the government’s latest lockdown announcement, and we feel that taking this action is the right thing to do.”
[QD comment: Unite has tried to get ahead of probable rent strikes by students not occupying accommodation by offering a 50% discount. Whether it will be enough to stave off a strike remains to be seen, but it had to do something. We wait to see how other student accommodation specialists deal with the new lockdown.]
UTG : Unite to offer students 50% rent discount