'Priced out?': The Harsh New Year’s Reality for UK Students
Ramsay Hall, UCL student accommodation. Image Courtesy: UCL Imagestore.
On December 10, a new report from Unipol, a UK-based non-profit organisation supporting students and universities, and the Higher Education Policy Institute (HEPI), a higher education focused think tank, showed that the maximum student loan is now less than the average student rent. Alarmingly, the maximum student maintenance loan now stands at £13,348pa, whereas the average student rent is £13,595pa, leaving many students across the country unable to afford basic living costs.
Students need an extra £247 purely for accommodation even though the maintenance loan is intended to cover other costs such as food, clothes, academic equipment, and travel. This, of course, increases pressure upon parents to provide support, many of whom do not have the means to do so. The report entitled ‘Priced Out? The Accommodation Costs Survey 2024: London Edition’ reveals data from several universities and private accommodation providers, those of which cover over 70,000 student beds in London. The findings of this report highlight the increasing financial pressure of life at many universities and the choice to study in certain places has never come at a higher cost both literally, and emotionally.
The report’s other findings outline how the average rent for purpose-built student accommodation has increased by 18% in the last two years. It is now £13,595 (2024/5): a significant increase from the previous £11,500 of 2022/3. Moreover, 14% of purpose-built student accommodation rooms in London now cost more than £20,000 per year, nearly tripling the 5% of 2022/3. The average university-owned accommodation prices also stand at £226 per week for 41 weeks (in London), whereas private providers charge an average £341 per week for 50-weeks for a comparable room. Unsurprisingly, the demand to produce student accommodation remains very high, driven by the increasing student numbers at universities and the limited space currently on offer.
Fortunately, the HEPI report also offered many recommendations. It urges universities and the Government to support the London Plan, which highlights the need for ‘affordability and sustainable development’. HEPI also implored universities and private providers alike to increase their efforts of financially supporting students through bursaries and other measures. The important thing here is to continue attracting, and retaining, young talent in London. Further advice is for the Government to dismantle the student maintenance loan system, which, as of now, means many students cannot afford their basic living costs. This can be done, HEPI says, by giving more information, advice, and guidance to help students further understand the accommodation market. The most effective recommendation, perhaps, was for student accommodation to become integral to local development plans and planning policies.
Despite this advice, however, it is difficult to feel hopeful. The only way to see change, as all of us students know, is to implore those in power to show that they care. While most of us in higher education can feel dejected, and rejected, by our government, the one thing we can do is make our voices heard. Going to rallies and demanding our universities listen is the only light at the end of this dark tunnel.