There is a 15% rise in the total budget of spending on accommodation in the nation, which can be seen through the latest report published by Graddinghomes.com. This surge is driven by several factors such as; rise in the rental costs, increased enrolment of international students, and a shift towards a premium PSBA housing option. The widening gap between maintenance loans and actual living costs is intensifying financial pressures and a reliance on family support.

LATEST FIGURES

The annual rent of the purpose-built accommodation has risen up to 13,595 for the academic year 2024/25. This is approximate 18% from the last one, which was earlier, 11,500 in 2022/23. London is still the most costly city, with students paying an average of 1,211 in 2023. That is much more than other areas, like Northern Ireland, at 904 per month.

KEY FACTORS

The major key factor that drives this increase is the steady growth in rental prices across the nation. This rise was of 8% in early 2025. Besides, in some key cities this growth was even faster. Such as in London, Manchester, and Edinburgh it was approximately 8-12% yearly.

Another factor adding to the rise in the accommodation expenditure is the growing popularity of UK. As Over 600,000 international students enrolled in the academic year 2023-24, and this figure is projected to increase further, pressuring the housing market.
Supply shortage and market pressure adds to the factors affecting the growth. Despite the increase in demand of housing options, the supply remains constant, pushing the prices and spending budget higher.

Adding to the reasons is the landlords who are selling their properties due to increased mortgage payments are reducing the availability of HMO (houses in multiple occupation, which is a popular choice for international students.

With the modern amenities, but at a higher price, PSBA are becoming a preferred type of housing due to its independence and privacy. This housing option has seen the sharpest rise recently. In cities like London, the average annual cost of PBSA is 13,595, which exceeds the UK government’s maximum maintenance loan of 13,348.

Thus, this makes it difficult for the maintenance loan to cover the cost of the rent. Therefore, this mismatch between the rent amount and the loan is creating enormous pressure on the students, which shows that 59% of students struggle to pay rent.

To cope with this situation, many students are turning to alternative financial support resources. Around 61% have borrowed money to pay rent-36% from family or friends, and 25% through bank loans, overdrafts, or credit cards. Besides, some have also increased their part-time working hours to meet the increased need for finances. This negatively impacts well-being and academic performance.

The demand continues to rise in the major cities in UK as there is a need of approximately 1.4 million housing but there are only 678,000 PBSA beds across UK. This shortfall has driven the increase in the rent and the overall budget.

Graddinghomes.com recognizes the vital importance of affordable and comfortable housing for students. Our search platform simplifies housing selection by providing verified listings, detailed property information, and comparison features. Students receive support through our resources for rental contract understanding and budgeting and learning about tenant rights.

“We understand how critical suitable housing is for student success and well-being. At Graddinghomes.com, our mission is to connect students with ideal accommodation options through our extensive network of trusted providers. By leveraging our partnerships, we work to ease the housing search and ensure affordability, safety, and comfort for every student,” says Mamta Shekhawat, Founder of Graddinghomes.com.

The 15% increase in the proportion of student budgets dedicated to accommodation is a clear indicator of a worsening affordability crisis. Without immediate and effective interventions, the rising cost of accommodation will continue to risk student wellbeing, academic success, and the fundamental principle of equitable access to higher education in the UK.