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Poorer students are being priced out of attending university in London due to soaring rent costs surpassing the value of maintenance loans.
An examination of student housing expenses in the UK capital revealed that the average student rent of £13,595 in 2024-25 exceeded the maximum loan amount for students in London of £13,348 for the first time.
These findings are likely to intensify calls for the government to provide more assistance to less affluent students who are encountering a growing “cost of learning crisis” that is discouraging them from pursuing higher education, according to the Higher Education Policy Institute think-tank, which co-authored the study.
The government recently announced a 3.1 per cent increase in university tuition fees and maintenance loans following a ten-year freeze, but the report found that rental costs in London are rising nearly three times faster.
Tuition fees will climb from £9,250 to £9,535 in 2025-26, while the maximum maintenance loans for London students will rise to £13,762 — a slight increase of just over 3 per cent, as rental costs in the capital surged by a total of 18 per cent over the past two years, according to the analysis.
Education secretary Bridget Phillipson, during the fees announcement, urged universities to “significantly enhance efforts to enhance access for disadvantaged students and remove barriers to opportunity.”
HEPI director Nick Hillman described the figures as “alarming” and emphasized the immediate need for a national review of student maintenance.
“Student accommodation is overlooked in Whitehall, and yet the government wonders why there is a decrease in demand for higher education despite a growing number of school leavers,” he added.
Universities UK, the sector’s lobbying organization, acknowledged that the November increase in maintenance support was a positive step, but insufficient.
“If the government wants to promote social mobility, it must reassess the maintenance support package to ensure that individuals from disadvantaged backgrounds are not deprived of the opportunity to attend university — or their preferred university — due to financial constraints,” they added.
The analysis was carried out by Unipol, the UK’s largest student housing charity, using data from the triennial Accommodation Costs Survey, a long-standing survey that commenced in 1967 and focused exclusively on London this year.
The report cautioned that without intervention, the situation in the London student rental market could serve as a precursor to similar issues in other regions where rents are still more manageable in relation to incomes.
“The stakes are high: will students with average incomes be able to attend their desired university in the future?” the report queried.
Unipol’s deputy chief executive, Victoria Tolmie-Loverseed, highlighted that rising expenses, increased construction costs, and heightened compliance requirements were all contributing to escalating rent levels.
“London is globally recognized as a hub for higher education, but our report indicates that English students receiving the average student loan will struggle to afford their expenses and may be priced out,” she noted.
The Department for Education acknowledged the recent 3.1 per cent increase in maintenance loans and stated: “We understand the concerns of some students regarding accommodation availability and affordability, and expect universities and private landlords to ensure that their offerings are reasonable, transparent, and in the best interest of students.”
Data visualization by Amy Borrett