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Poorer college students are being priced out of going to college in London as a result of spiralling lease prices are outstripping the worth of upkeep loans.
An evaluation of scholar housing prices within the UK capital discovered that common scholar lease of £13,595 in 2024-25 exceeded the utmost mortgage for college students in London of £13,348 for the primary time.
The findings will gasoline calls for for the federal government to supply extra help for poorer college students who’re going through a mounting “cost of learning crisis” that’s placing them off going to college, in keeping with the Greater Schooling Coverage Institute think-tank that co-produced the examine.
The federal government introduced final month that it was permitting college tuition charges and upkeep loans to rise by 3.1 per cent after a decade-long freeze, however rental prices in London are rising practically 3 times quicker, the report discovered.
Tuition charges will rise from £9,250 to £9,535 in 2025-26 whereas the utmost upkeep loans for college students in London will improve to £13,762 — an uplift of simply over 3 per cent at a time when rental prices within the capital rose by a complete of 18 per cent over the previous two years, in keeping with the evaluation.
Schooling secretary Bridget Phillipson mentioned on the time of the charges announcement that the federal government was calling on universities “to significantly step up work to boost access for disadvantaged students and break down barriers to opportunity”.
HEPI director Nick Hillman mentioned the figures had been “shocking” and pointed to the pressing want for a nationwide overview of scholar upkeep.
“Student accommodation falls through the cracks in Whitehall and yet the government wonders why demand for higher education is down at a time when the number of school leavers is growing,” he added.
Universities UK, the sector foyer group, mentioned November’s uplift in upkeep help was a step in the proper path, however not sufficient.
“If the government wants to promote social mobility, it must review the maintenance support package to ensure people from more disadvantaged backgrounds are not deprived of the chance to go to university — or their university of choice — because of costs,” it added.
The evaluation was carried out by Unipol, the UK’s largest scholar housing charity, utilizing information from the triennial Lodging Prices Survey, a long-running survey that started in 1967 and this yr centered solely on London.
The report warned that except motion was taken, the state of affairs within the London scholar rental market may very well be a harbinger of issues to return in different elements of the nation the place rents are nonetheless extra inexpensive relative to incomes.
“The stakes are high: will students on average incomes be able to go to their university of choice in years to come?” the report mentioned.
Unipol deputy chief govt Victoria Tolmie-Loverseed mentioned {that a} mixture of rising overheads, larger development prices and elevated compliance necessities had been all pushing lease ranges larger.
“London is a renowned global hub for higher education, but our report shows English students receiving the average student loan will struggle to pay their way and could be priced out,” she added.
The Division for Schooling famous the latest 3.1 per cent rise in upkeep loans and mentioned: “We recognise the concerns of some students about the availability and cost of accommodation, and expect universities and private landlords to ensure their provisions are affordable, fair, clear, and promote the interests of students.”
Information visualisation by Amy Borrett
