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Undergrads spend over half of student loan on housing

Paloma Kubiak
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Paloma Kubiak

Student rents in some parts of the UK have risen by as much as 18% in the last year alone, due to a critical shortage of student housing, research reveals.

According to, some landlords are ‘cashing in’ on the excess of demand, as student room prices spiral out of control in key university cities.

Some students are now spending as much as 65% of their loans on accommodation.

Higher quality accommodation

The reason for the hike in student housing is partly down to greater demand for higher quality accommodation. While some landlords are investing in improvements to their rental properties, and are charging higher rental prices, others are dropping out of the student rental market altogether to target mainstream renters instead.

Danielle Cullen, managing director at, said: “I’m consistently shocked when I see the rising student rental price figures each year. Students are spending 65% of their loans on somewhere to live – it’s ludicrous. Higher education is becoming less affordable for students from lower-income households, who are unable to get additional help with their finances.

“In the past, landlords could invest into an older property, fill it with some second-hand furniture, and bring in a regular income over the course of the university year. But, with the gradual rise in standards for student accommodation, we’re not only seeing landlords drop out of the student rental market, we’re also seeing a rise in prices.”