Average Student Rent in London Overtakes Maximum Maintenance Loan
Image courtesy: UCL Imagestore
On the 10th of December, Unipol and the Higher Education Policy Institute revealed that the average student rent cost in London has overtaken the maximum maintenance loan available from the government. This confirms a long-time concern of students that studying in the capital is unaffordable even with government support.
London is known for its expensive student accommodation, with prices averaging at £295 a week, and the report reveals a staggering 18% increase in weekly rent over the past two academic years. In spite of this, the maximum student loan stands at £13,348, which Student Finance England states is to help with-day to-day costs, including rent but also food, travel and other expenses. With a rise in rent costs and a lack of government aid, the financial burden of attending university often falls on the student’s family or the student themselves, with 55% of students now working in paid jobs alongside their studies to make ends meet.
The report follows the government’s announcement regarding higher education on November 4th, in which they stated their intention to raise tuition fees to £9,535 per annum in 2025. To aid students with the cost of living crisis, they also announced a 3.1% increase in maintenance loans. However, given that the average loan would be spent entirely on rent, many feel that this increase does not match the current needs of students struggling through a cost of living crisis.
As such, some universities have increased financial support for their students; for example, UCL provides an Accommodation Bursary for students from low-income backgrounds that live in halls owned by the university. Additionally, UCL has recently introduced the Student Participation Fund for students facing financial barriers that prevent them from partaking in clubs and societies.
The introduction of university grants has somewhat alleviated the burden for students, but it is unlikely that this can continue in the long-term. Universities are experiencing great financial burden, with the Office for Students estimating that 72% of UK universities will find themselves in budget deficits by next year as a result of falling student intakes and high inflation. The combined financial burden on both students and universities has put higher education in a dire situation, causing many student groups to call for further government support in solving this education crisis.