UK Student Housing Costs Surge by 15%, Financial Strain Grows

UK students are facing a significant financial burden as housing costs have skyrocketed by 15%. This surge is attributed to escalating rents, an influx of international students, and a growing preference for high-end accommodations. The inability of government loans to keep pace with these rising costs has left many students grappling with financial constraints, forcing them to rely on family support to afford housing.

According to a recent report by Graddinghomes, the average annual rent for purpose-built student housing has surged to £13,595 for the 2024–25 academic year, up from £11,500 in the preceding period. Particularly in London, where students bear the highest costs at around £1,211 per month, and in Northern Ireland, where the figure stands at approximately £904, the financial strain on students is palpable.

The report highlights an 8% increase in rents across the UK in early 2025, with major cities like London, Manchester, and Edinburgh experiencing hikes ranging from 8% to 12%. The growing population of over 600,000 international students in the UK has further exacerbated the demand-supply imbalance, leading to a surge in housing prices.

Graddinghomes’ findings reveal a concerning trend of landlords exiting the student rental market due to heightened mortgage payments. This exodus has notably reduced the availability of affordable shared houses, particularly popular among international students, thereby compounding the financial burden on students.

While purpose-built student accommodation offers enhanced amenities, it comes at a higher cost. In London, the annual rent for such accommodations now exceeds the maximum government loan amount of £13,348, leaving students with a significant funding gap to bridge.

The report sheds light on the challenges faced by students, with 59% struggling to meet rental payments. To cope with the escalating costs, 61% of students have resorted to borrowing money from various sources, including family, friends, or banks. Additionally, some students have increased their part-time work hours, impacting both their academic performance and well-being.

With only 678,000 purpose-built student accommodation beds available in the UK against an estimated demand of 1.4 million, a severe shortage persists, further propelling housing costs upwards. Graddinghomes aims to assist students in finding secure and affordable housing options through verified listings and support tools, recognizing the pivotal role suitable housing plays in students’ academic success and overall well-being.

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