Students Are Being Priced Out of University Accommodation – Guido Fawkes

The rental crisis is forcing students to borrow, commute, or put their lives in storage as maintenance loans struggle to keep up.

In what is fast becoming a crisis in UK higher education, thousands of students are now being priced out of university accommodation across the UK. 

With recent statistics reporting that rent is now higher than the maximum maintenance loan, many students are resorting to short-term storage, sofa-surfing, or even commuting from home, just to stay in education.

As tuition fees continue to dominate headlines, it’s the cost of living – and more specifically, rent – that’s quietly doing the most damage.

Rents Up 15%, Whilst Loans Flatlining

A recent report from Graddinghomes revealed that average spending on student accommodation has jumped 15% for the 2024 – 25 academic year, with Purpose-Built Student Accommodation (PBSA) now costing £13,595 per year, up from £11,500 in 2022–23, marking an 18% rise in just two years.

Meanwhile, the maximum maintenance loan for an English student living away from home in London is £13,348, already £247 short of the average rent before a single meal, book or travel expense is factored in. 

For students who get the average maintenance loan of £10,705, the shortfall grows to £2,890, according to a joint report from HEPI and Unipol.

“The average purpose-built student room in London now costs more than the maximum maintenance loan, leaving students with a shortfall even before they’ve bought any food,” said Nick Hillman, Director of HEPI.

Storage Becomes a Survival Strategy

As students try and content with the high cost of living and rising rents, some are finding creative ways to avoid signing year-round leases or subletting their rooms during periods when they’re not physically on campus.

That’s where student storage companies like The Box Co. are stepping in. The UK-based company offers storage by the box with free collection and delivery from just £3.56 per month, making it easier and more affordable for students to move out during the summer or put their stuff away mid-year.

“We’ve seen a rise in students using our services to avoid paying for empty rooms during non-term times,” Nicole Rose Helera, Operations and Logistics Lead at The Box Co. commented, “It’s no longer just international students doing this – British undergrads are doing the same. It’s a way for them to make sure they are only using the rooms when they actually need them, in an attempt to lower the burden of rent.”

PBSA Dominates, But at What Cost?

Purpose-Built Student Accommodation was designed to offer safer, more modern spaces for students, with en-suite bathrooms, on-site gyms and communal areas. But due to the cost, it’s quickly becoming a luxury.

In London, 14% of PBSA rooms now cost over £20,000 per year, according to HEPI, a figure that was just 5% in 2022. Some of the highest-end studios in areas like Bloomsbury and King’s Cross, are charging up to £800 per week for 51-week contracts.

Borrowing and Burnout

The result? Debt and desperation.

Data from Graddinghomes shows that 61% of students are now borrowing money to cover their rent, 36% from family or friends, and 25% via bank loans, credit cards or overdrafts. 

A further 59% say they struggle to pay rent regularly, and many have taken on extra part-time work, which eats away at their study time. 

Commuting, Crowding, and the Collapse of Student Life

The gap between rent and financial support is changing student life in the UK. According to HEPI, four in ten English students studying in London are now living at home, often out of necessity rather than choice. 

The traditional student experience, living on or near campus and getting involved in societies and events, is becoming a privilege many can no longer afford.

Even university-owned accommodation is struggling to stay affordable. The average en-suite rent in halls is £226 per week, while private companies are charging an average of £341 per week for similar rooms, often with less flexibility.

Calls For Reform

From HEPI to Save the Student, there is a growing consensus that the UK government has to re-review the student maintenance loan system. 

As the cost of higher education continues to increase, the question is no longer just “Can you afford to go to university?”, but “Can you afford to stay?”