UK Competition Watchdog Probes Unite Group’s Student Housing Takeover of Empiric

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CMA Launches Investigation into Unite Group’s Acquisition of Empiric Student Property

LONDON, October 23, 2025 — The UK Competition and Markets Authority (CMA) has opened an investigation into Unite Group’s (UTG.L) proposed acquisition of Empiric Student Property (ESP.L), casting uncertainty over a potential consolidation in the country’s booming student accommodation sector.

The CMA’s Phase 1 investigation, announced on Thursday, will assess whether the planned merger could lead to a substantial lessening of competition in the UK’s student housing market. The regulator has set a deadline of December 19, 2025, for its initial findings.

The move comes amid growing scrutiny of large-scale mergers in the UK’s real estate and student housing sectors, where surging demand and limited supply have driven both rents and investor interest sharply higher.

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Unite Group Faces Regulatory Hurdles Amid Expansion Push

Unite Group, the UK’s largest owner, manager, and developer of purpose-built student accommodation (PBSA), has been actively expanding its footprint across major university cities, including London, Manchester, Bristol, and Glasgow.

Its proposed takeover of Empiric Student Property, which owns and manages premium student residences across the UK, would further strengthen Unite’s position as the dominant player in the PBSA sector.

However, analysts have warned that the merger could reduce competition and potentially concentrate market power in certain university towns, where both companies already have significant holdings.

The CMA’s decision to intervene reflects mounting concerns that consolidation could limit housing options and affordability for students, particularly as the sector faces a shortage of high-quality and reasonably priced accommodation.

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Market Context: Student Housing Demand at Record High

The UK’s student housing market has been under intense pressure in 2025, driven by record numbers of domestic and international students, coupled with a shortage of new developments.

Rental prices for student accommodation have risen more than 10% year-over-year, according to industry data, prompting both investors and policymakers to pay closer attention to the market dynamics.

Unite Group’s acquisition of Empiric would create a portfolio exceeding 200,000 beds nationwide, giving it unprecedented scale and reach.

Still, regulatory experts say the CMA is likely to focus on regional overlaps and the impact on student tenants, as affordability concerns continue to dominate public discourse.

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CMA’s Phase 1 Review and Next Steps

Under the CMA’s merger control framework, the Phase 1 review will determine whether there are sufficient grounds to open a Phase 2 investigation, which involves a more detailed analysis of competition issues.

If the CMA concludes that the deal could harm market competition, Unite may be required to offer remedies—such as divesting certain assets—or risk the deal being blocked altogether.

Both Unite Group and Empiric Student Property have yet to issue formal comments on the investigation.

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Key Takeaways

• CMA opens Phase 1 investigation into Unite Group’s proposed Empiric acquisition.
• Deadline: December 19, 2025, for initial decision.
• Deal would further consolidate the UK student housing market, already under strain.
• Regulators concerned about competition and affordability in key university cities.
• Unite and Empiric shares could see volatility amid regulatory uncertainty.