Student rent soars by 30% as living costs hit record high

Students returning to university this year face a steep rise in living costs, especially rent, according to a new report.  

The NatWest student living index shows that the average monthly rent for students in the UK has increased by 30% since last year, reaching £591.  

The index ranks the affordability of 30 UK university towns and cities based on living expenses and student income.  London remains the most expensive city for student accommodation, with an average rent of £840. 

Least affordable place for students to live 

The index also reveals that Edinburgh is the least affordable place for students to live, followed by Oxford and Cambridge.  Students in Edinburgh have the lowest monthly income of £1,453, while their monthly spending is £1,072. 

The head of NatWest student accounts, Jaimala Patel, said: "An increased reliance on student loans and double-digit increases in spending on food shopping and rent is having a real impact on student finances. 

"There are some reassuring signs that students feel far more comfortable budgeting than in previous years, and they are taking steps to live within their means." 

Students are spending more on groceries 

The NatWest report also finds that students are spending more on groceries, which are now their second biggest expense after rent.  The average monthly supermarket bill for students has risen by 44% year-on-year, reaching £109.  

This spending rise may reflect the impact of inflation and supply chain disruptions on food prices.  To cope with the rising costs, more students are taking up part-time work or relying on financial support from their parents or guardians.  

Students experience financial stress 

The report also says that 46% of students experience financial stress by the end of each term, up from 35% in 2022.   And 24% of students find managing their finances stressful, up from 19% last year. 

To save money, most students are making changes to their lifestyles, such as reducing online shopping (67%), going out less (51%) and eating fewer meals (34%).  The report also suggests that students should plan their budgets carefully and seek advice from their university or bank if they need help with their finances. 

Student life and costs in the UK 

Simon Thompson, the managing director of Accommodation for Students, said: "The NatWest index comes out every year and is a good indicator of student life and costs in the UK. 

"This year's index underpins what we already know - rents are rising and the supply of student homes is dwindling. 

"Students should be enjoying their studies at university and not fretting about where they are going to live - and how they are going to pay it." 

He added: "Demand for student accommodation continues to grow as more young people head to university - but so do the costs of doing so. 

"Good landlords will offer quality homes at reasonable rents but growing demand and falling supply will, undoubtedly, push rents up."