Student accommodation: working out what you can afford

How do you work out what you can afford?

Before you start looking at properties, it’s important to understand your own budget.

A good starting point is to compare your monthly income with all your essential spending. For students, this will usually include:

• your maintenance loan
• any part-time work income
• any support from family or bursaries

From there, think about your regular outgoings like food, travel and bills. What’s left is what you can realistically spend on rent.

Planning this early can help you avoid committing to somewhere that’s difficult to afford later.

What counts towards your student budget?

Rent is often your biggest cost, but it’s not the only one. When working out what you can afford, make sure you include:

Fixed costs

• rent
• any bills not included (energy, water, broadband)
• mobile phone

Living costs

• groceries
• travel to university
• course materials

Lifestyle spending

• socialising
• subscriptions
• gym or hobbies

These costs can vary a lot depending on where you live and your lifestyle.

How much of your income should go on rent?

There isn’t a one-size-fits-all answer, but there are some general guidelines.

In the UK rental market, affordability checks often look at whether rent is a manageable part of your income. For example:

• Rent is often considered affordable if it’s around 40% or less of your income
• Some budgeting approaches suggest keeping rent closer to 30% of your income to leave room for other costs

As a student, you may not have a full income, so it’s important to be realistic about what feels comfortable month to month, not just what you might be approved for.

Why sharing can make renting more affordable

Many students choose to live in shared houses or flats, and for good reason.

Sharing can help:

• reduce your individual rent
• split bills between housemates
• make more areas and property types affordable

If you’re renting with others, everyone is usually named on the tenancy agreement and shares responsibility for the rent.

What upfront costs should you plan for?

It’s not just monthly rent to think about. You’ll also need to budget for costs at the start of your tenancy.

These can include:

• a deposit
• a holding deposit to secure the property

You may also need money for things like moving, furniture or kitchen essentials if the property isn’t fully furnished.

How location affects what you can afford

Where you live will have a big impact on your budget.

• Rent tends to be higher in cities and near universities
• Living further out can be cheaper, but may increase travel costs
• Some student accommodation includes bills, which can make budgeting easier

It’s worth weighing up the trade-offs between location, price and convenience.

Tips to help you stay within your budget

If you’re worried about affordability, there are ways to make things more manageable:

• look for house shares instead of living alone
• choose properties with bills included where possible
• set a monthly budget before you start viewing properties
• if possible, keep some money aside for unexpected costs

Taking time to plan your finances can help you feel more confident in your decision.

Search student accommodation to rent