Many student tenants are struggling to get by, with their monthly loan payments barely covering rents on their accommodation, according to this year’s National Student Accommodation Survey from Save the Student.
The average student loan payment comes in at £602 a month, but the average student rent price is a staggering £565.89 per month – leaving almost nothing left over for food, transport, toiletries, books and, in some cases, bills.
Further findings from the survey show that students pay an average of £301 in tenancy deposits for their property and £208 in letting agent fees. Meanwhile, one in five students have struggled to get their deposits back at the end of their tenancies.
The poll of more than 2,000 students highlighted other issues, with 16% complaining that agent fees weren’t made clear, while another 14% were worried about inappropriate landlord visits.
Furthermore, the analysis reveals that student loans are failing to keep up with the cost of renting and housing.
Save the Student is warning that increasing rent prices are pushing tenants into financial hardship, with too much reliance on their overdrafts.
Jake Butler, the Student Money Expert at Save the Student, comments: “The fact that the maintenance loan barely covers students’ rent is shocking. Students are forced to get a job at the expense of their studies or rely on their parents, who may struggle to support them.
“It’s quite clear that the sheer cost of just having a roof over their heads is putting a huge strain on students across the country, exacerbating mental health issues and the temptation to drop out of university.”
He adds: “Forget about tuition fees and high interest rates – now that the Government is finally reviewing the student finance system, a fairer maintenance loan should be at the top of its agenda.”
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