Students hit with rent premiums of up to 88% to live near campus

A surge in student rents for accommodation close to university campuses could present students in England with a big financial challenge - despite a rise in maintenance and tuition fees from the 2025/26 academic year. 

Research from Zero Deposit shows that the cost of renting homes near universities incurs a price premium of up to 88%.  

The analysis compares average rent prices within the postcode areas of the top 100 UK universities to those in the wider local authority districts. 

The study by the deposit alternative provider reveals that the average rent in these areas is £1,509 per month, which is a 12.4% premium compared to the £1,293 average rent in the wider area. 

'Stark reality of rent price premiums' 

The firm's chief executive, Sam Reynolds, said: "Students are facing a more expensive university education than ever before, with tuition fees going up, the cost of living through the roof, high interest rates, and expensive rent.  

"So, to see the stark reality of rent price premiums in major university towns is a real concern." 

The disparity in student rent with rental costs in the wider council area is most significant at the University of St Andrews in Scotland. 

Students there are paying £1,509 monthly in the KY16 area - that's a shocking 87.9% premium over the £804 rent in the Fife district. 

Universities with significant student rent premiums 

Durham University's DH1 area has a monthly rent of £988, which is a 73.9% premium compared to the broader area. 

In London, students at Imperial College in the SW7 area face rent costs of £5,363, a substantial 72.6% higher than the £3,107 average in Westminster. 

Other universities with significant student rent premiums include the University of South Wales in Pontypridd (63.9%) and Liverpool Hope University (58.6%).  

The top 10 list is completed by Swansea University (54.8%), UEA in Norwich (44.5%), Aberystwyth University (40.2%), the University of Warwick (36.2%) and the University of Essex in Colchester (36.1%). 

Most affordable place for students 

Zero Deposit's research comes after a recent study by L&C Mortgages which found that Middlesbrough is the most affordable place for students to live. 

Students living there have an average monthly expenditure of £758.58 - and an average rent of £286.81 per month. 

In second place was Sunderland with monthly expenses of £775.77 and an average rent of £304.63.  

Hull was third, with a monthly expenditure of £782.82, and average student rents of £271.92. 

High rent premiums for students 

The managing director of Accommodation for Students, Simon Thompson, said: "The research highlights the financial strain that high rent premiums place on some students who wish to live near their universities.  

"As maintenance and tuition fees are set to rise, these additional costs only exacerbate the financial challenges they face." 

He added: "However, it's something that student landlords will be wary of, and this underscores the importance of understanding the pressures that student tenants are under. 

"While students will enjoy higher maintenance grants, their tuition fees are increasing and renting is becoming more expensive."