Belfast revealed as the most affordable place for UK students to live

The Student Living Index captures a snapshot of what it is like to be a student at university in 2024 and other key findings show that the time spent by students in part-time work has increased by 154%, average student monthly rents have increased by 17% since 2023 and just over half of the students surveyed admit to running out of money before the end of term.

The Ulster Bank Student Living Index surveyed 6,186 students to determine the most affordable place to study and considers a range of factors, including how much students spend going out, income they earn from part time work, and other household expenditures.

Thanks to relatively low average monthly rent costs (£554 pcm), Belfast is the most affordable place in the UK for students to live. The index takes account of the average monthly living and accommodation costs divided by average monthly income, (excluding student loan), to calculate a score for 32 of the most popular university towns and cities across the UK.

Rents have increased across the board this year, and faster than inflation, with an average increase of 17%. The national average monthly rent for students now stands at £689.43, however in positive news for students here, both Belfast and Derry come in significantly lower than this. Typically, students in London can expect to pay £1,032 per month in rent.

Household bills have jumped by more than 300% this year, making them the second biggest outgoing for students, on average costing £157.78 per month. Belfast students were somewhat exempt from this rise with those surveyed reporting they spend £57 on household bills. Similarly, supermarket spending in Belfast and Derry were on the lowest end of the scale, coming in at £100 and £96 per month, respectively.

Other notable outgoings for students here included the average cost of a night out which comes in at £44. This jumps to £55 for students in Belfast, making the city the fourth most expensive when it comes to nightlife. On the whole, students’ lifestyle spending has significantly increased, particularly on social activities and alcohol.

The average cost of a pint has increased by 6% this year, and London continues to be the most expensive, with students in the capital expecting to pay £5.74 per drink and around one fifth often paying between £7 and £8. Belfast students reported the lowest amount spent on takeaways overall, while the lowest expected cost for a takeaway meal can be found in Derry (£14.65).

When it comes to financing their time at university, increased costs are resulting in students take on more part-time work. According to the index, the average student is working 46.39 hours per month, up from 18.3 hours per month in 2023. Students are also relying on friends and family for help with their finances. This type of monetary support has increased by 57% year on year.

When it comes to budgeting, more than four fifths (81%) are actively trying to manage their finances with 93% saying that they have had to make lifestyle changes in order to live within their budget. Common cuts students have made involve pulling back on online shopping, nights out and some even reported reducing the number of meals eaten each day (38%).

Traditional banking apps remain the most popular budgeting method with 34% of those surveyed relying on these to keep their spending on track. 19% of respondents don’t budget at all, something Terry Robb, Head of Personal Banking at Ulster Bank, says could be a cause for concern in later years.

“This year’s Student Living Index paints a pretty realistic picture of the financial experience university students are having in 2024. Students haven’t been immune to cost of living increases so it’s unsurprising to learn that outgoings such as rent, household bills, and supermarket spending have all risen this year.

“We see that students are proactively making changes to increase their income through part-time work and reducing their spending when socialising with friends. This highlights the impact everyday spending is having on student finances and the measures they are going to mitigate the effects.

“It’s positive to see an increase in the number of students taking steps to manage their finances however it is slightly concerning that around one fifth of those surveyed are not budgeting at all. We know that healthy saving and spending habits developed at a young age can lead to a more positive relationship with personal finances in later life so it’s important that we support all young people to feel comfortable with budgeting.

“We provide a range of tools to help students, including spend categorisation in our banking app and a useful Round Ups tool to encourage a strong savings habit.”

Students with an Ulster Bank account can access a range of tools and features through digital and mobile banking services including free Financial Health Checks for all customers and a Know Your Credit Score feature to help students with their finances.

Find out more at www.ulsterbank.com/students