Rising Rents Deepen UK Student Housing Affordability Crisis
2 Min Read
The United Kingdom is facing a worsening student housing affordability crisis, with new data revealing a 15% rise in the average accommodation budget for students in the 2024/25 academic year. According to a report by Graddinghomes.com, annual rents for purpose-built student accommodation (PBSA) have surged to £13,595 — up 18% from £11,500 in 2022/23.
This sharp increase is being driven by several compounding factors: a national rise in rental prices, increased international student enrolment, and growing demand for premium PBSA housing. Despite this, the supply of student beds remains severely limited. The UK has only 678,000 PBSA beds, despite an estimated demand for 1.4 million — a shortfall that continues to push prices upward.
London remains the most expensive city for student housing, with average monthly rent at £1,211, significantly higher than Northern Ireland’s £904. Cities like Manchester and Edinburgh have also seen rental growth between 8–12% annually.
The situation is especially dire for international students. Over 600,000 enrolled in UK institutions in 2023/24, a figure expected to rise further. Meanwhile, traditional housing options such as HMOs (houses in multiple occupation) are shrinking due to landlords selling properties amid rising mortgage costs.
Compounding the problem is the growing gap between the UK government’s maximum maintenance loan (£13,348) and actual rent costs. With PBSA now exceeding loan limits, 59% of students reportedly struggle to afford rent. Many are turning to family, loans, overdrafts, or increasing part-time work, often at the expense of their mental health and academic performance.
Graddinghomes.com Founder Mamta Shekhawat noted, “We are committed to helping students find safe, affordable housing. It’s essential to their success and well-being.”
Unless significant policy changes are implemented, the affordability gap in student housing threatens to undermine access to higher education across the UK.
Source: INDIA TODAY
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