Budgeting
Upfront costs
- A refundable holding deposit (to reserve a property) - this must be capped at no more than 1 week’s rent.
- A refundable security deposit – this must be capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above. Some landlords/letting agencies will offer a no deposit option.
- It is typical for the first month’s rent to be paid upfront when securing accommodation.
If you are entering an assured shorthold tenancy, your security deposit must be protected by a tenancy deposit protection scheme. Your landlord/letting agency must tell you which scheme your deposit is protected by.
Rent and bills
- The average weekly rent in 2024 for a studio flat is £232 (bills not inclusive).
- The average weekly rent in 2024 for a 1 bedroom flat is £307 (bills not inclusive).
- The average weekly rent in 2024 for a shared house is £140 per person (based on 4-6 bedroom houses, bills not inclusive).
- Contracts for shared houses and flats in the private sector are likely to be 50 – 52 weeks long, so you need to ensure your budget covers this whole period. You should consider whether you need to work part-time during your studies and over the summer to support your living costs.
The above information is based on our own market research.
Calculate an average monthly cost by multiplying the weekly amount by 52, then dividing the new sum by 12
- Bills are not usually included in the rent, so you will need to organise these with your household. The average monthly cost of utilities for a 4 bedroom household in 2024 is £107 per person (energy, water, broadband, TV licence).
- We would also advise all students to arrange contents insurance. You can buy this for as little as £4 a month.
The above information is from Save The Student.
Guarantors
You will probably be required to provide a guarantor when applying to rent a property in the private sector. The purpose of a guarantor is to guarantee rent payments. If you fail to pay rent, your guarantor will be asked for payment. Most students ask a relative or friend. A person must meet certain criteria to act as a guarantor, this will vary across letting agencies and landlords.
If you do not have a suitable guarantor, some agencies and landlords may accept use of a guarantor service instead. A guarantor service is a paid service that provides rental guarantee insurance during your tenancy. Paying for rental guarantee insurance through a guarantor service ensures that a landlord will receive payment if the tenant defaults. Similarly to other insurance policies, tenants will have to meet certain conditions in order to be eligible for the service, such as passing reference checks, providing a deposit and providing an eligible co-signer.
See some guarantor services listed below:
Another alternative to a guarantor that may be accepted is paying rent upfront. A commonly accepted payment schedule is 6 months upfront, with a second payment of the remaining amount after 6 months. Sometimes the full rental amount for the tenancy period will be requested upfront. Not all agencies/landlords will accept this instead of a guarantor.
If you plan to use a guarantor service, or suggest an upfront payment in place of a guarantor, we advise that you check whether this will be accepted in your initial queries, before viewing a property, so that you don’t waste your time.
Private landlords and residential landlords may be more open to negotiation regarding guarantors.
Council tax
When you move into private accommodation, you need to register your household for Council Tax. You can online.
After registering, you can then apply for any applicable discounts you and others in your household are eligible for.
Full-time students are exempt from paying council tax. You can online.
You can online.