THE maximum student maintenance loan no longer stretches far enough to cover the average cost of rent in London, new research reveals today.
Student rents in the capital have skyrocketed by 18 per cent in just two years, according to a new report from Unipol and the Higher Education Policy Institute (HEPI).
Those from households with incomes under £25,000 a year are eligible for up to £13,348 to cover their living costs while studying.
But the average annual rent for purpose-built accommodation in London now stands at £13,595, meaning that those receiving maximum support would still have to find another £247 just to cover rent, plus further funds for other essentials such as food, books and transport.
For students granted an average loan of £10,705, there remains a shortfall of £2,890, placing increasing pressure on parents to bridge the gap.
The report gathered data from a wide change of universities and private providers, covering more than 70,000 beds.
University-owned accommodation was found to be more affordable, with average en-suite rents for institutional housing at £226 per week for 41 weeks.
But 14 per cent of purpose-built student accommodation in the capital was found to cost over £20,000 or more per year.
HEPI director Nick Hillman called the numbers “shocking” and said many people “feel unable to study in London at all, even though they had planned to do so.”
He said: “As a result, higher education in London is coming to look very different from higher education elsewhere in the UK and by accident rather than design.”
A University and College Union spokesperson said: “The current funding model does not work for anyone.
“Universities are in dire need of investment whilst tuition fees coupled with sky-high student accommodation costs have become a new form of debt bondage for students.
“Fees should be scrapped and accommodation that is available and suitable for students needs to be factored into government plans to deliver more social and affordable housing during [Labour’s] first five years back in power.”
The report calls for student accommodation to be better integrated into local housing and planning policies and urges the government and universities to support the principles behind the London Plan, which emphasises affordability and sustainable development.
Generation Rent chief executive Ben Twomey said:“Our homes are the foundation from which we build our lives, relationships and aspirations. Student accommodation is no different.
“But Generation Rent research found that only 1 in 6 on-campus university rooms in the UK is affordable for students. Universities must offer their students enough affordable accommodation so that every person undertaking their degrees and qualifications is able to thrive and to reach their full potential.”
National Union of Students president Amira Campbell said: “Rents are rising and maintenance is not keeping up.
“We need to see the government step up and reform student funding, so it increases with inflation so that students’ parents aren’t scrambling for thousands and thousands of pounds just to ensure their child has a roof over their head.”
