CMA Investigates Unite Group’s Planned Acquisition of Empiric Student Property

LONDON, October 23, 2025 — The UK Competition and Markets Authority (CMA) has launched an official Phase 1 investigation into Unite Group’s (UTG.L) proposed acquisition of Empiric Student Property (ESP.L), signaling increased regulatory scrutiny over the rapid consolidation of the UK’s student accommodation sector.

The probe, announced on Thursday, aims to determine whether the planned takeover could lessen competition in the student housing market, where Unite already holds a dominant position as Britain’s largest provider of purpose-built student accommodation (PBSA).

According to the CMA, the watchdog will assess potential effects on pricing, quality of housing, and regional market dynamics. The initial review is scheduled to conclude by December 19, 2025, when the authority will decide whether to proceed to an in-depth Phase 2 investigation.

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Unite Group’s Expansion Strategy Faces Scrutiny

The acquisition of Empiric Student Property, a key competitor with a strong presence in major university cities such as Manchester, Bristol, and Edinburgh, would significantly bolster Unite’s national footprint. The deal aligns with Unite’s ongoing strategy to expand its premium student housing portfolio and capitalize on surging demand from both domestic and international students.

However, industry experts warn that the transaction could reduce competition and drive up rental costs, especially in regions already facing chronic shortages of affordable student accommodation.

Analysts also note that Unite’s acquisition spree comes amid an increasingly constrained housing market, where student rent inflation has outpaced overall rental growth in major UK cities.

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CMA’s Investigation: What’s at Stake

The CMA’s Phase 1 inquiry will assess whether the merger would create or strengthen a dominant position for Unite Group, potentially limiting consumer choice or stifling innovation in housing services.

If concerns arise, the CMA could request divestments, impose behavioural remedies, or escalate the case to Phase 2 — a deeper probe that could delay or block the deal entirely.

This investigation highlights the government’s broader focus on maintaining fair competition in critical housing sectors, following similar reviews into real estate investment trusts (REITs) and institutional property acquisitions earlier this year.

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Market Reaction and Industry Context

Following the announcement, Unite Group’s shares (UTG.L) showed limited movement in early trading, while Empiric Student Property (ESP.L) saw a mild uptick as investors weighed potential takeover benefits.

Market analysts suggest that even if the deal faces delays, Unite’s long-term fundamentals remain strong due to continued growth in student enrollment, particularly among international students drawn to the UK’s leading universities.

However, the CMA’s intervention signals that future consolidation in the sector may face greater resistance, especially as policymakers grapple with the challenge of balancing investor interests against housing affordability for students.

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Key Dates and Next Steps

• October 23, 2025: CMA announces Phase 1 investigation into Unite–Empiric deal.
• December 19, 2025: Deadline for CMA’s initial decision.
• Possible Phase 2 Review (2026): If competition concerns persist, the CMA could extend the inquiry.