As we look towards the end of the calendar year, one thing that stands out about 2024 is that this is the year that we saw the cost-of-living crisis really start to impact students, including an impact on student choices around accommodation.
More students struggling with having enough money to get by
In this year’s Spring wave of the GSL Index we saw the number of students saying that they struggle with having enough money to get by increase by 4% to 36%. Last year, having enough money to get by was in ninth place on the list of top student struggles; however, it moved to fourth place this year. Data from NatWest’s Student Living Index confirms that students are facing increased pressure, with more than half of students (52%) surveyed by NatWest reporting that they have found themselves running out of money by the end of term – up from 46% in 2023.
There is also evidence that financial pressures are forcing students to make sacrifices and even consider dropping out of university. A survey of 1,178 students from institutions across the UK undertaken by Red Brick Research (Red Brick) found that 72% of students have had to make sacrifices in response to the cost-of-living crisis, with nearly 1 in 10 struggling to the extent that they may be unable to continue their studies.
The majority of students surveyed by Red Brick have cut back their spending across most areas of university life, with students’ extra-curricular/social lives most likely to be impacted. The majority (56%) have also made sacrifices around their academic experience (e.g. limiting travel to campus, forgoing equipment and materials or opting out of field trips), and 24% have cut back on their spending on student accommodation.
NatWest’s 2024 Student Living Index highlights that sacrifices made by students extend to food, with 38% reporting that they had made cuts to the number of meals eaten each day. Online shopping (59%), nights out (55%) and subscriptions (22%) are other areas where students have been forced to make cuts.
Increased importance of part-time work
Part time work is increasingly important, but many students are struggling to find a part-time job that meets their needs. Red Brick’s survey found that approximately 2 in 5 students were working while studying, while a similar proportion were looking for work, with needing the money to get by the most common motivation for working (cited by 71%).
Yet, in the Spring wave of the GSL Index we saw the number of students saying they are struggling to find part-time work increase by 7%, meaning it was the second biggest struggle for students after stress and anxiety (it was the eighth biggest struggle the previous year). To put this in perspective, this means that finding part-time work was more of a struggle for students than issues such as coursework, workload, depression and loneliness.
Red Brick’s student survey sheds some further light on this, highlighting that a majority of those looking for work have had difficulty finding jobs that fit their class schedules. Other challenges reported by students included increased competition and a lack of responses from employers. International students reported facing discrimination from potential employers, which hindered their job search efforts.
Accommodation impact
Increased rents are forcing students to either pay more than they budgeted for or make significant compromises. NatWest’s 2024 Student Living Index report confirms that “rents have increased again this year, and faster than inflation, with an average increase of 17%. The national average monthly rent for students now stands at £689.43. London is the most expensive city in the UK for students to rent, with an average cost of £1,031.60 per month, up 23% from 2023.”
Concerningly, more than half (56%) of the students surveyed by Red Brick said they encountered a lack of affordable options in their search for student accommodation, and for many (43%), limited accommodation availability was an issue. Perhaps as a result, more than 2 in 5 (44%) found themselves paying higher rent than they initially budgeted for. Students looking for accommodation within the private rented sector are especially likely to struggle to find suitable options, and to have to compromise on cost, condition, proximity to campus and safety/security.
Interested in learning more?
For more information about the Red Brick Research report, Navigating the Cost-of-Living Crisis: A Study on How Rising Living Costs Affect Student Engagement and Retention in the UK, contact Olivia McCafferty.
To learn more about the GSL Index and how it can help student accommodation providers measure the student accommodation experience, drive improvements and benchmark against other providers, click here.
