We surveyed 5,001 students to explore living costs at university and find the most affordable cities.
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Students & Graduates
NatWest Student Living Index 2025
Comparing the cost of living for UK students
From spending and budgeting to coursework and nights out, the NatWest Student Living Index is full of inside knowledge on university life.
Over the past decade, our in-depth survey has shed light on what it’s really like to be a university student, speaking to 37,776 people during this time.
To mark its 10-year anniversary, we reveal the cost of living for students in different UK cities, showcasing the most affordable locations. We also look at common student expenses – and how they pay for them.
Our survey of 5,001 UK undergraduates was conducted between 22nd April and 20th May 2025 by Savanta.
Key findings
- The North of England has the cheapest regional student rent, averaging £530.27 a month.
- Students increasingly need more than one income source to balance their budgets. A growing number have tried side-hustles and influencer marketing to boost their finances.
- A typical night out costs £30.83, although one in five students never visit pubs.
- Students are tackling financial stress with help from university resources, family support and personal coping mechanisms.
- 57% of undergraduates have faced fraud or scams over the past year – up from 30% in 2024.
Which UK city is most affordable* for students?
Lincoln, Bolton and Cardiff are the three most affordable towns and cities for UK students this year. Here’s the full top 10 to help you compare the cost of living in different places.
* Our Index aims to understand the financial situation of students by comparing their average monthly expenses (accommodation, activities, and essential items) with their average monthly income. A score of 1.0 would mean student expenses match income perfectly, while a score above 1.0 shows that expenses exceed income. It's important to note that this Index focuses on income but excludes student loans. Therefore, the Index provides a view of earned income versus expenses.
Everyday expenses and income
The average monthly student rent in the UK now stands at £562.67. After their rent, students typically spend the most on groceries (£146.76), household bills (£124.08), and clothing, shoes and accessories (£123.30) each month.
Students regret their spending on eating out and takeaways (40%), alcohol (32%), and items of clothing (22%) the most.
Undergraduates are most likely to cover their rent with parental support (49%) and student loans (48%). They commonly use their personal income (41%) and savings (19%) too.
Family remains the top source of financial advice, with 54% of students consulting loved ones for help. But 41% look to TikTok for advice, showing the growing influence of social media channels.
Money management
A third (33%) of students now feel confident about managing their money. But the same number have considered dropping out of university due to financial difficulties and pressures. More than half (53%) run out of money before the end of their term.
Some 29% of students took a gap year before heading off to university. Nearly half of them (46%) used this time to save money towards their studies.
Half of undergraduates have gone on fewer nights out to help balance their budgets.
Fraud and scams
A growing number of students have had to contend with fraud and scam attempts. Well over half (57%) have fallen victim or encountered these in the past year, compared to just 30% in 2024.
Bank scams are now the most common threat facing undergraduates, jumping from 9% to 25% in only one year.
Student fraud and scam victims now lose an average of £287.60 to criminals.
Get to know our Student bank account
Our Student bank account offers plenty of features and benefits:
- £85 and a four-year tastecard. Offer T&Cs apply.
- Up to £2,000 interest-free arranged overdraft from year one (limited to £500 in your first term).
- Apply for up to £3,250 interest-free from year three onwards.
Overdraft subject to our lending criteria; 18+.
- To apply, you must be 17+ and have been living in the UK for at least 3 years. Online applications only.
- To confirm you’re a student and eligible for this account, we require your unique 16-digit UCAS code. Courses without a UCAS code are not eligible for our Student account.
- You need to be a full-time undergraduate student (on at least a 2-year course at a UK university/college) or on a nursing course lasting a year or more. You can apply within 6 months of your course start date.
- You must use your Student account as your main account by depositing student finance, wages or other regular income into it.
More help and support for students
From university living costs to different finance options, students have plenty to think about. Check out our guides and resources to find the support you need.
