The latest data from the NatWest Student Living Index 2025 highlights that university life is increasingly about balancing budgets, making trade-offs, and navigating unprecedented financial pressures. Based on responses from over 5,000 undergraduates, the findings confirm that cost-of-living pressures continue to weigh heavily on the student experience.
Income sources
The NatWest survey found that nearly half (49%) of students rely on parents to cover part of their rent, and a similar proportion (48%) depend on student loans. These findings are similar to the latest GSL Index results, which highlight that more students are now reliant on parental support to cover housing costs (rising from 53% in Q4 2023 to 56% in Q4 2024).
For many, income is patched together from part-time jobs, personal savings, and bursaries. Yet despite this, the average monthly income sits at just £317, leaving little room for unexpected costs. Over half of all students surveyed by NatWest report running out of money before the end of term.
Student sacrifices and regrets
Half of those surveyed by NatWest have cut back on nights out, while 31% are reducing meals (although pleasingly, this is down from 38% in 2024), and 25% are limiting their heating use to save money. Nearly one in five students has increased the hours they work to try to live within budget. A standout finding from the report is how frequently students regret their spending – 40% said they regret money spent on takeaways or meals out, a reflection of just how fine the margins are.
Yet 59% say they avoid discussing their money struggles, whether out of stigma or reluctance to burden others. This highlights that many of the financial pressures that play out for students are invisible until they impact wellbeing or retention.
Financial anxiety
One in five students reports significant money-related stress, although 31% feel that they get some support from their university for financial stress and management. Worryingly, almost one in three students has considered pausing or leaving their studies due to financial strain. This underlines how financial vulnerability goes beyond day-to-day budgeting.
Similarly, data from the latest wave of the GSL Index shows that students are experiencing greater financial strain. In Q4 2023, budget was the fifth most important consideration for students when choosing where to live. However, in Q4 2024, budget rose to second place. It is of note that the number of students saying they are struggling with budgeting has actually decreased slightly; however, this is because traditional concerns around budgeting are now being eclipsed by more fundamental financial pressures, with a higher proportion saying they struggle to make ends meet.
Both the NatWest and GSL Index data reaffirm that financial pressures are now woven into every aspect of the student experience – from housing and food choices to the social experience and wellbeing. For the student accommodation sector, these insights are an important reminder that decisions around rent levels, facilities, and support are taking place against a backdrop of real financial vulnerability. They are also a reminder of the importance of transparency around accommodation costs and ensuring that students are signposted to financial and other wellbeing support. While there is no single solution, recognising the lived reality of today’s students is critical, as is factoring these ongoing pressures into planning and provision.
