Thousands of students are celebrating after receiving their A-level results today, and taking up their first or insurance offers, or going through clearing. But for many, the excitement of starting university in September will be overshadowed by a sharp rise in costs.
For the first time in seven years, tuition fees have increased - up £1,035 to £9,535 a year - and living costs are higher than ever. Students now spend an average of £900 a month on rent, food, travel, and essentials, with London students facing closer to £1,400.
The difference between renting in the most and least expensive top-20 ranked non-London universities – Edinburgh and Sheffield – is almost £11,000 over a three-year degree, so it can be worth taking those costs into account when choosing through clearing.
There's a full guide to the best student bank accounts here - with free railcards, TV subscriptions, takeaways and cold hard cash.
Fiona Peake, Student Money Expert at Ocean Finance, warns: “Tuition fees have gone up for the first time in seven years, rent is at record highs, and everyday costs like food and travel have risen sharply. Many students are finding their maintenance loan doesn’t even cover rent, meaning they need extra income or parental support just to get by.”
8 ways students can make their money go further
- Set a weekly budget: “Break down your loan into weekly amounts," says Fiona. "Ten minutes a week checking your bank balance can stop a mid-term cash crisis. Nights out can quickly drain your budget, so swap pricey bars for pre-drinks and student nights with cheaper entry fees.”
- Pick the right student bank account: “Freebies like a railcard or cash bonus are tempting, but focus on a generous interest-free overdraft that lasts through your studies. Treat this as a safety net, not extra spending money.”
- Hunt down every student discount: “Sign up for UNiDAYS, Student Beans, and other student discount platforms before term starts. Many retailers offer discounts on clothes, tech, groceries, and entertainment, so always check before buying. Train fares rose by nearly 5% recently, but a 16-25 Railcard costs £30 a year and gives 33% off - that’s about £576 saved over a three-year degree.”
- Use free university resources: “Many universities offer free printing, software, and laptop loans. There are also bursaries and scholarships worth applying for via sites like The Scholarship Hub.”
- Sell what you don’t need: “Turn unwanted clothes, tech, and books into extra cash through eBay, Vinted or Facebook Marketplace. This can help top up your budget and keep your space clutter-free.”
- Avoid paying for things you don’t use: “Check your outgoings for subscriptions you don’t need or use. If you don’t watch live TV or BBC iPlayer, you don’t need a TV licence. You can even claim a refund for months you are not at university.”
- Shop around for bills: “Moving into a shared house can be a bit of a shock when you have to shell out for internet, energy, and phone bills on top of rent and food costs. Previous tenants may have set up services with certain internet or energy providers, but switching to a better deal could save you money.”
- Claim your council tax exemption: “If you live with other students, you don’t need to pay council tax, and if you share with a non-student, council tax applies but can be reduced by 25%. Contact your local council to claim this discount.”
Tamsin Powell, Consumer Finance Expert at Creditspring adds: “With university fees rising to over £9,500, students heading off this autumn will be starting adult life already facing big financial pressures, and that’s before rent, food and travel are factored in. It’s never been more important for young people to feel confident managing money.
“This is a crucial moment to build good financial habits, but the sad fact is that most students aren’t taught how. The earlier they get to grips with budgeting, borrowing and saving, the better equipped they’ll be to avoid debt spirals and make the most of their finances, now and in the future.”
Which is the cheapest university for living costs?
Sheffield, Liverpool and Leeds are the cheapest top-20-ranked university cities for rent. All have average room rents well below the UK average of £748 per month.
London students will spend, on average, £35,280, on rent over a three-year degree. But it’s possible to spend less than £20K on rent in six top university cities.
Edinburgh (£823) tops both Oxford (£813) and Cambridge (£795), as well as York (£751) and Bristol (£732) as the most expensive top 20 university cities for rent.
According to a new survey by SpareRoom, London is, of course, the most expensive city to live in and students planning to attend one of the capital’s top universities, including SOAS, Birkbeck, LSE, King’s College and UCL, will also need to factor commute costs into their budgets. The average London room rent is now £980 per month, according to SpareRoom’s rental index, with the cheapest rents to be found in the E postcode area (£944).
The price difference between renting in the most and least expensive top-20 ranked university cities for rent outside of London – Edinburgh and Sheffield – is £3,636 per year or £10,908 over the course of a three-year degree.
The maximum maintenance loan available to full-time students living away from home and studying outside London in 2025-26 is £10,5442. Renting in Edinburgh costs, on average, £9,876 per year, leaving just £668 per year or £56 per month towards other living expenses.
The cheapest top-20-ranked universities for rent are:
- Sheffield (£520 per month)
- Liverpool (£532)
- Leeds (£581)
- Nottingham (£587)
- Newcastle (£604)
The cheapest rents in the top-45 ranked university cities and towns can be found in Bangor and Hull, at £500 per month.
Matt Hutchinson, director of flatshare site SpareRoom, says: “A combination of high demand and short supply in the rental market means there’s no such thing as cheap rents.
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"But there are university towns and cities where living costs are considerably more affordable and, across a three-year degree, can offer a substantial discount on the total cost of attending university which students going through clearing should be aware of.
“Students should expect rents to increase during their course and budgeting is important as maintenance loans may cover rent and bills, but there might not be much left for other living expenses, such as food or going out with friends.
"Those planning to live further away from campus to save money should also factor in travel costs, as these can be significant.”
