Financial Strain on UK Students due to Rise in Rent

In recent UK rent news, the United Kingdom is witnessing an ‘unprecedented rise’ in rent costs for university students, creating significant challenges for affordability and accommodation availability. According to a real estate services firm, Cushman & Wakefield report, student rents have surged by over 8% on average compared to the previous academic year. Some areas experienced staggering hikes, reaching up to 27%. This surge in the housing crisis in the UK is propelled by a surge in student numbers, increasing operational costs, inflation, and a decrease in new accommodation availability.

Over the past decade, the UK has witnessed a significant increase in the student population and the UK rent crisis in need of accommodation, exacerbating the ongoing housing crisis in the UK. This surge, totalling nearly 390,000 new students, has coincided with rising operational and development costs, soaring inflation, and a decreasing supply of available bed spaces. Consequently, the UK rent crisis for student accommodations has surged, with the average annual rent for private sector housing outside London now surpassing £7,600. This cost equates to 77% of the maximum student maintenance loan allowance.

The impact of this UK rent crisis is acutely felt in major university cities such as Durham, Exeter, Birmingham, and Nottingham. In these cities, the shortage of affordable bed spaces has reached an alarming level, with fewer than one in 10 beds priced within the reach of students reliant on maintenance loans. This dire situation underscores the urgent need for comprehensive solutions to address the UK housing crisis, particularly in the context of accommodating the expanding student population.

The surge in rental costs for Purpose-Built Student Accommodation (PBSA) has become a pressing issue in the UK rent news and housing news. PBSA rents have grown by an average of 9.4%, with cities like Glasgow witnessing increases of over 19%. This surge has created a significant disparity between rent prices and the available funding sources, putting immense financial strain on students. A recent survey by the National Union of Students revealed that 69% of students are turning to part-time employment to cope with the escalating accommodation costs. However, more than one-third of these students reported that the increased workload from part-time work has affected their studies.

The housing crisis in the UK has hit cities like Manchester and Bristol particularly hard, exacerbating persistent accommodation shortages. In Bristol, a private hall of residence recently imposed a staggering 27% rent increase, making it financially unfeasible for numerous students. This affordability crisis has forced international students to explore alternative arrangements, such as staying with friends, private accommodations or undertaking lengthy commutes to their universities. Amid the current UK housing news, the traditional model for constructing new student accommodations has faced disruption due to surging interest rates. Many opt to sell these properties or transform them into short-term rentals through platforms like Airbnb.

In the face of the UK rent crisis, experts are underscoring the pressing need to confront affordability issues, impose rent freezes, and establish rent controls. With student numbers on a consistent upward trajectory and rising borrowing expenses, taking swift action is imperative to guarantee that students can secure access to affordable, high-quality housing that bolsters their educational pursuits and overall well-being. This issue is a significant component of current UK housing news, directly affecting a substantial portion of the population grappling with housing challenges. 

Booking accommodation with Amber can assist students in combating the rising prices by providing access to a wide range of affordable and suitable options, helping to mitigate the impact of increasing rental costs. Are you a student looking for UK visa tracking? Check out our ultimate guide to track your UK visa. List with amber to stay up to date with the recent happenings in the world of student accommodation.