Students in London are facing higher living costs than ever before. The average student rent of £13,595 is currently greater than the maximum student loan amount of £13,348.
A new report from Unipol and the Higher Education Policy Institute (HEPI) reveals alarming trends in the London student accommodation market. The maximum student loan amount of £13,348 is now less than the average student rent of £13,595.
The average annual rent for a room in London from a Purpose-Built Student Accommodation provider (which includes universities and private providers) is £13,595 in the 2024/25, up from £11,500 in 2022/23. This is an 18% increase in just two years.
Higher rentals in London are leaving students unable to afford basic living costs. The average purpose-built student room in London now costs more than the maximum maintenance loan, placing students in debt even before purchasing food, paying for travel, or covering other living expenses.
Data shows that rents for Purpose-Built Student Accommodation (PBSA) have risen by 18% over the past two academic years and 14% of Purpose-Built Student Accommodation rooms in London now cost more than £20,000 per year.
The maximum maintenance loan for an English student studying in London and not living at home (which is paid to those from households on under £25,000 a year) in 2024/25 is £13,348. This is less than the average annual rent and leaves students needing to find an additional £247 just to cover their accommodation costs – yet the loan is meant to cover other expenses too, such as food, travel, clothes, books and personal items. For students receiving the average loan of £10,705, the gap is £2,890, piling pressure on parents to find extra support.
The report, titled Priced Out? The Accommodation Costs Survey 2024: London Edition (HEPI Report 182) presents data from a wide range of universities and private providers, covering over 70,000 student beds in London. It highlights the growing affordability gap faced by students and the escalating financial pressure on those choosing to study in the UK’s capital.
Maintenance Loan for living costs
The maximum amount you can get depends on where you live
