Students worry about cost of living rises
A survey has revealed that 62% of students in the UK say that the rising cost of living is affecting their mental health as they worry about paying bills.
The findings from Save the Student highlights that university students are facing huge and immediate challenges with rising energy bills.
The platform says that despite a government pledge to help people struggling with rising energy costs, it hasn't taken into account student living conditions.
Students could end up being £100m worse off
Their research estimates that students could end up being £100m worse off when compared with those who are eligible for the government's full support.
The platform estimates that full-time students will miss out on more than £40 million of government support because they are not eligible for a council tax rebate of up to £150.
In addition, students may end up paying £60 million more from their £200 bills credit last October - that's a combined £100 million shortfall compared with those who are eligible for a full support package.
One student told researchers: "Mentally and physically, my health has struggled because of the cost and not being able to have hot water or heating."
Of those questioned, 58% of students say their energy bills have risen and they will now have to cut back on socialising, eating out and shopping.
Student accommodation rent
Researchers say that parents are also contributing to their child's student accommodation rent more often than they have done before - which means that the cost of accommodation in term-time is having an impact on the whole family.
A spokesman for the platform said: "Student accommodation costs are already a big drain on a student's finances, and we can see from our insight that the situation is set to get a lot worse, unfortunately."
The platform is now calling on the Universities' Minister, Michelle Donelan, and the Chancellor, Rishi Sunak, to outline plans for helping a 'forgotten sector of society'.
A Department for Education spokesman said: "No student should have to worry about their financial situation while focusing on their studies."
They added that the Office for Students has been asked to protect the £256 million of support for disadvantaged students and for those students who need financial help.
Money is in addition to the hardship funds run by universities
The spokesman added that the money is in addition to the hardship funds run by universities and that £85 million of funding was made available to universities with the purpose of helping students for the 2020/21 academic year.
The managing director of Accommodation for Students, Simon Thompson, said: "It is a real worry that with rising energy prices in the UK, many students may struggle financially.
"There's an obvious implication that they may not be able to pay rent on their student accommodation, and student landlords need to be proactive if rent is paid late to investigate whether rising living costs are behind the delayed payment."
The research also found that students spend £148 per week on average on their rent, and one in 10 students say that paying rent is a ‘constant struggle’.
And, on average, parents contribute £2,288 per year to help pay for their child's rent, and the average rental deposit is £285 per student.
When it comes to rising energy bills, three in five students say that their bills have already risen, and four in five worry about costs rising further.
Nottingham offers the largest student accommodation pipeline outside of London
Meanwhile, it has been revealed that outside of London, the largest pipeline of purpose-built student accommodation (PBSA) is in Nottingham.
That's according to one student accommodation search platform that found that Nottingham currently has 9,973 student bedrooms being built or have planning permission.
London is in top spot with nearly 15,000 beds, with Leeds in third place with 6,666 student beds being built or planned.
The research also reveals that according to the latest UCAS data, the number of students being accepted from the UK and outside of Europe, is rising.
Year-on-year increase in student applications
There's been a year-on-year increase in student applications of 1.3% from those sectors, while the number of acceptances from students in the EU fell by 50%.
A spokesperson for the platform said: "Despite the uncertainties caused by a significant decline in European Union student acceptances and the pandemic, the UK's PBSA sector remains a sought-after asset among institutional and private investors."
They added that some university towns and cities attract a disproportionately high volume of PBSA investment because of a perceived shortage of student accommodation stock in those areas.
The spokesperson said that in most cases, the markets concerned are not under-supplied and the platform is encouraging investors to use due diligence and to analyse the fundamentals in the student accommodation sector to decide where to invest to 'avoid disappointment'.
