As the property market in London spirals out of control, students studying there are struggling to pay rent as supposedly ‘affordable’ properties cost nearly twice the maximum maintenance loan allowance.
How much a student receives from student finance depends on household income – the lower the household income, the more loan they are entitled to. Students from household incomes below £25,000 are eligible to receive the maximum maintenance loan of £11,002 per year to live away from home in London.
Research by StudentTenant.com into affordable student properties found that of the 1,008 student properties currently advertised in London, every single property exceeded the maximum maintenance loan allowance. The cheapest student property is available for £11,232 per year, £230 greater than the maximum allowance, whilst the most expensive ‘student property’ costs an eye-watering £2,024 per week; nearly 10 times greater.
Danielle Cullen, Managing Director at StudentTenant.com, said “Looking at these figures is frankly quite shocking. The property market in London is running wild, and studying there is becoming less accessible for students without additional help with their finances. It’s really concerning to see that none of these properties are lower than the maximum student loan.
Who’s going to finance the difference? Sure, students could get a part time job, spend savings or borrow money from family members, but when you account for rent, living costs, bills and money for socialising, it’s just not really affordable. It’s a huge amount of money to ask for and I’m sure that a lot of families won’t have the disposable income to help.
And over £2,000 per week for a student flat in London? What student can really afford to pay that much a week for an apartment? It’s silly money.”
Further research into new student property developments in London found that 80% of all student rooms exceeded the maximum student loan allowance. The third cheapest student flat in London EC1 costs £728 more than the allowance. For £230 per week, students receive a measly 20 sq.ft room with just a microwave, single hob and tiny refrigerator.
In comparison, the most expensive purpose built student development project in London would set back students £348 per week; £7,094 greater than the maximum allowance. Students would gain access to onsite games rooms, cinema rooms, cafes and a laundrette.
Danielle continues, “Students from lower backgrounds are already being forced out of higher education due to the hike in university fees and expensive living, but these high costs to study in London are another example that universities are reverting back to being built for the rich and inaccessible for the poor.”