Most students now set off for their first year at university expecting to leave with a certain amount of debt after they have graduated. But the choices students make about which university they attend, and where they live whilst they are there, can significantly affect their finances, according to Halifax Estate Agents
In recent years student accommodation expenses have risen by more than double the increase in student loan support available, according to student body, the National Union of Students. However, these expenses vary significantly across the country.
Inevitably London is the most expensive place, with students paying on average £79 in rent per week - £10 more than the national average of £69. In fact, accommodation in Lilian Penson Hall for University College London can cost up to £217.70 per week.
At the other end of the scale, University of Teesside has the lowest rent in the country with rooms starting from £32.90 per week.
Over the duration of a standard three-year course, based on an average 38 week rental period per annum, this could mean a difference of £7,022.40 paid out in total which would have a significant bearing on your bank balance.
Colin Kemp, Managing Director at Halifax Estate Agents, said:
“Today students need to consider many more factors than which course is best for them. They also need to take into account the financial implications of choosing different universities and locations. The decisions can have far reaching consequences for their financial future and can affect their parents too. “
Once your location is decided, there are a number of options available to students looking for somewhere to live, which can also have a bearing on the health on their finances.
The NUS recommends that students stay in halls of residence as long as possible, as the rent tends to be more affordable there. But for most there comes a time when they have to vacate their student halls and search for private rentals; and for many who have never before been in the property market, this can mean hidden costs, the potential risk of dealing with unscrupulous landlords, and the possibility of paying out more than they need to or should. Therefore, students are advised to only consider accredited landlords who have agreed to abide by a set of standards relating to the management of the property’s condition.
Whoever students rent from, they should be sure there are no clauses written into the tenancy agreement that would allow them to suffer unfair penalties or obligations. For example, they should be wary of charges for repairs that are the landlord’s responsibility, extra charges for late payment of rent, or unfair increases in rent.
With house prices rising at a higher rate in some university towns, an increasing number of parents are now buying properties as investments, and then renting them out to their children and other students.
Also, some students minimise costs by attending universities and colleges in their home towns, continuing to live at their parents’ house.
Of course, it is not just accommodation that will leave students out of pocket. The average expenditure predicted by the NUS for students during the 2004/2005 academic year is over £8,500 including food, travel, leisure, utility bills, rent, household goods, clothes, books, fees and insurance. This figure rises to more than £10,000 for students in London.
Halifax Estate Agents offers the following tips to students about how they can keep a check on their finances whilst making the most of the funds available:
- Get a student bank account but don’t be dazzled by free gifts.
- Check that you are getting the best deal possible on your mobile phone tariffs and utility providers. A comparative guide is available from www.switchwithwhich.co.uk.
- Make the most of your student discounts that you can use at many clothes shops and restaurants.
- If you work during your course and earn less than £4,745 per annum, ask your employer for a P38 (S) form, which will mean you will not be deducted tax.
- Always open your post, even if it looks like junk mail. It could be alerting you to a problem with your finances.
- Pay larger bills first so that you know how much money you have left.
- Plan your budget for each month and try to stick to it.
Use our Student Budget Calculator
