THE CHOICE of university is a crucial moment for many students, with affordable accommodation increasingly shaping that decision, and the consequences lasting well beyond graduation.
Against this backdrop, Monzo has revealed that even the cheapest rooms available take up 48% of the maximum student loan (61% in London), which means students only have half of their loans left for day-to-day living.
Leading digital bank Monzo also found that the average weekly cost of student accommodation in the UK is £192.02, with 82% of students being influenced by these high prices when choosing a university.
The analysis of accommodation options at 144 universities across the UK, along with a survey of 1,000 UK students and recent graduates, showed that the average weekly cost was almost twice the average student’s accommodation budget.
The top five best value university halls in the UK:
- University of Bradford, West Yorkshire
- University of Wolverhampton, West Midlands
- University of the West of Scotland, Renfrewshire
- University of Sunderland, Tyne and Wear
- Liverpool Hope University, Merseyside
The cheapest accommodation in Monzo’s study was in Yorkshire at The University of Bradford, with an average cost of £97.75 a week. Affordable options are also found at the University of Wolverhampton (£110), the University of the West of Scotland (£111) and the University of Sunderland (£118).
The top five best value university halls in the UK:
- University of Bradford, West Yorkshire
- University of Wolverhampton, West Midlands
- University of the West of Scotland, Renfrewshire
- University of Sunderland, Tyne and Wear
- Liverpool Hope University, Merseyside
The priciest university halls in the UK:
The analysis revealed that the most expensive accommodation options are all in London, at Regent’s University (with an average weekly cost of £503.75) the Health Sciences University London campus (£482.50), the University of London Intercollegiate Halls (£388.59) and Richmond American University (£385). The research also revealed that the average room costs £280.80 per week in London, compared to £169.83 outside London. That means that students in London pay 65% more than those studying elsewhere in the UK.
The top five most expensive university halls in London:
- Regent’s University London
- Health Sciences University (London campus)
- University of London (Intercollegiate Halls)
- Richmond American University London
- UCL Garden Halls, London
The top five most expensive university halls outside of London
- University of Edinburgh
- University of Cambridge
- Durham University
- University of St Andrews
- University of Bristol
Overall, almost a third (32%) of students did not choose to live in halls for their first year because they were too expensive. 30% chose to stay at home in their first year, while only 34% lived in halls and 33% lived in private rented accommodation.
Wherever they chose to live, 82% of those surveyed said they have felt overwhelmed by accommodation costs. As a result, almost half (48%) took on a part-time job during term time, while 40% did the same during holidays. Over a quarter (27%) admitted relying on the bank of mum and dad, and 8% even moved back home.
Monzo found that, based on 144 universities across the UK, the average weekly cost of university halls across the UK is £190.02, which is equivalent to £768.08 per month on a standard 4-week student contract.
However, 41% of students only budget an average of £107.46, and just 10% keep more than £160 aside for accommodation.
At the Health Sciences University, the gap between the cheapest and most expensive room was £285 per week, which Monzo found was the largest difference in accommodation price at the same uni.
The most expensive room at the University of Nottingham costs 3.14 times more than the cheapest room on campus, making it the most unequal university for accommodation prices in the study. There were also significant differences in the prices of ensuite and non-ensuite rooms:
- Students at Imperial College London pay an extra £196 per week for an en-suite room compared with the most expensive shared-bathroom option.
- At Sheffield Hallam University, en-suite rooms cost 114% more than the most expensive non-en-suite rooms
- At City University London, en-suite rooms are actually £40 per week cheaper than the cheapest non-en-suite option – the most extreme example of en-suites undercutting shared bathrooms.
Chris Mucklow-Norell, Head of Brand Marketing at Monzo said: “The myth of the ‘cheaper’ student lifestyle is officially over.
“Our data reveals that even the most affordable rooms can become a fair chunk of a student’s loan, leaving less for actual living.
“Monzo is built to give students the real-time visibility they need to navigate this, using features like Pots and instant spending notifications to manage their money simply.
“Our goal is to make sure students get the most out of every pound, so they can enjoy the university experience without the financial overwhelm.”
Monzo’s Top Tips for Managing Accommodation Costs:
- Save early: Planning ahead prevents unnecessary stress when term starts.
- Stay organised with Pots: Separating money into pots such as accommodation and food shopping makes it easier to stay on top of a student budget.
- Keep on top of shared costs: Communal living often involves shared costs. The Monzo app makes it easy to split expenses in just a few taps.
- Take advantage of online banking: A Monzo current account offers instant spending notifications, easy ways to save money, and an Instant Access Savings Pot.
- Make the most of student finance: If students get their loan paid into their Monzo account, and it’s paid via Bacs, they could get the money one day early.
To read more about Monzo’s ‘real cost of university halls’ research, please click here.
