Sanctuary exploring sale of student accommodation portfolio as it finds ‘creative ways’ to generate income

It said: “We continued to take a strategic, long-term view of our asset portfolio to ensure it supports our core social purpose. As part of this, we are actively pursuing the sale of some of our student portfolio. 

“Additionally, we completed the sale of a number of shared ownership homes and are considering further disposals, reflecting our commitment to thinking creatively about how we generate funds for core social housing.”

The report also said that, following the end of the financial year, “in connection with the ongoing sale process for the group’s student portfolio, the purchaser has sought to revisit pricing assumptions, citing changes in macro-economic and market conditions arising after the reporting date”.

Sanctuary declined to comment further on the sale.

Its annual report also confirmed a rise in operating surplus to £239m, up from £216m the previous year, as reported in its unaudited trading update in May.

Sanctuary completed 790 new homes during 2025-26, down from 838 the previous year.

The number of homes started on site also dropped, from 3,307 to 2,469 over the reported period. 

Craig Moule, chief executive of Sanctuary, said the group had “maintained a strong and stable financial position, achieving continued revenue growth and a second consecutive year of margin stabilisation”.

Of the group’s planned student accommodation and shared ownership sales, he said: “These transactions help us unlock and recycle capital so we can continue making the right level of investment in existing homes and services across the organisation.

“We will only move forward where doing so aligns with our strategic objectives and is the right decision for customers.”