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Student housing budgets in the UK have increased by 15%
.The rise is due to higher rents, more international students, and a growing preference for premium student accommodation, according to the latest report by Graddinghomes.
At the same time, government loans are not keeping up with actual living costs, pushing many students to seek financial help from their families.
The average rent for purpose-built student housing (PBSA) is now £13,595 per year for 2024–25. That’s up from £11,500 in 2022–23.
In London, students pay the most—around £1,211 a month—while in Northern Ireland, it’s closer to £904.
Rents rose by 8% across the UK in early 2025. In cities like London, Manchester, and Edinburgh, the increase was between 8% and 12%.
With over 600,000 international students now studying in the UK, demand for housing is rising. But supply has not kept pace, causing prices to go up further.
As per the report by Graddinghomes, many landlords are leaving the student rental market due to higher mortgage payments.
This has reduced the number of affordable shared houses (HMOs), especially popular among international students.
PBSA options, while offering better facilities, cost more. In London, annual PBSA rent now exceeds the maximum government loan of £13,348.
This leaves students with a funding gap.
The report says 59% of students find it hard to pay rent.
To manage, 61% have borrowed money—either from family, friends, or banks. Some students have also increased their part-time work hours, which affects their studies and health.
There are only 678,000 PBSA beds available in the UK, but demand is estimated at around 1.4 million. This shortage is pushing costs higher.
Graddinghomes says it helps students find safe and affordable housing through verified listings and support tools.
“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,” said Mamta Shekhawat, founder of Graddinghomes.
