Lack of supply leads to soaring rents for students

The Times reports that students are finding it increasingly difficult to pay their rent as maintenance loans are failing to keep up with rising accommodation costs. 

StuRents data shows that the cost of PBSA has risen by 8.1% in 2024, while the cost of HMO has risen by 5.3%. Maintenance loans have only increased by 3% meaning affordability is a problem. The average student is now paying £158 per week in rent.

Students coming from households with a combined income of £40,000 are left with just £8 a week from their maintenance loan in 2024 after paying rent, compared to £27 a week in 2021.

‘There’s an assumption that any shortfall in maintenance loans is topped up by mum and dad, but I’d argue that parents aren’t aware of that,’ says Richard Ward, Head of Research at StuRents. 

Student rents are expected to rise further in the next year as higher financing and build costs have deterred developers from building new stock. Only 11,000 beds were delivered over the past year, and most of the completed schemes have been priced at the top end of the market, meaning they are more likely to be occupied by wealthier international students.

Over the next few years, demand is expected to continue to outstrip supply. To balance this, approximately 330,000 new student beds would need to be added to the market by 2028.

Read the full story in The Times.