Leeds offers best value in university cost-of-living index

As A-Level and Highers students wait to hear if they’ve achieved the grades required for university places, The Royal Bank of Scotland unveils the Student Living Index 2007 – a league table which ranks Britain’s major university towns by cost-of-living.

The research, conducted in 27 British university towns this year, shows that the average Leeds student spends £186 per week on living and housing costs, but manages to offset these costs in part, with impressive weekly earnings of £128 from part-time work. At the other end of the scale, the average student in Nottingham spends £211 per week, but makes just £78.40 from term-time employment, the second lowest amount of all the university towns and cities surveyed.

This means that for the average undergraduate undertaking part-time work, choosing Leeds over Nottingham could theoretically leave them £74.60 per week better off. Over one academic year, this would equate to £2,238– the equivalent of more than 2,800 single track music downloads – a student essential for revising in the library and passing time on the way to lectures.

British students set to spend £10.3 billion on living costs and accommodation

The RBS research suggests that, in total, British students will spend over £10.3 billion in housing and living costs over the coming academic year. Of this: approximately £3.9 billion is spent on rent4; £1 billion on supermarket food shopping; £730 million on going out; £315 million on books and course materials; and £240 million on music and CDs.

The RBS Student Living Index research reveals that the city offering lowest weekly living costs (excluding rent) is Durham (£99), for the second year running and Lancaster (£112), a newcomer to the SLI; whilst London (£159) and Belfast (£147) have the highest. In terms of weekly housing costs, London (£102) and Oxford (£88) are the most expensive towns in the UK compared with just £59 in both Leicester and Sheffield.

Leeds: A Consistent Performer

Since the very first Student Living Index, back in 2004, Leeds has only once been out of the top ten. The city debuted in sixth place in 2004 and reached its best position – second place – last year before finally taking the top spot in 2007. Leeds takes the premier position due in no small part to the third highest average weekly earnings from part-time work, at £128 per week. Leeds has performed consistently well in terms of high-earnings and the fact that over half (51 per cent) of students consider student part-time work easy to come by is perhaps testament to Leeds’ booming economy.

Other remarkable movers and shakers in this year’s Index include second-place Brighton, which has climbed from mid-table fifteenth place to hot-on-the-heels of Leeds. Brighton achieves this marked improvement thanks to a significant increase in average weekly earnings from part-time work, rising from £88 in 2006 to £129.70 this year. In a reversal of Brighton’s fortunes, last year’s top spot Cardiff has taken the tumble from first in 2006 to sixteenth place, due to a drastic fall in average weekly earnings from £131 in 2006 to £91.70.

Britain’s hard-working students set to net £2.1 billion from part-time work

The RBS Student Living Index also shows that students are continuing to support their academic careers with part-time work during university terms to help cover the costs of studying. Two in five students (41 per cent) of undergraduates are taking part-time jobs during the university term to help offset their term-time living costs. However, bucking the growth trend on term-time working over the past four years, this is actually a slight decline from the 45 per cent of undergraduates who were taking on term-time work in 2006, which was the highest level since the study began in 2004.

It is interesting to note that financial support from parents as a source of additional income has fallen from first to third place this year, after student loans and vacation work. It may be that more students are opting to work in their vacations, rather than during term to cover living and accommodation costs.

According to the study, the hardest-working students are in Belfast and Dundee, where 61 per cent are undertaking term-time employment. On average, those with a part-time job work 15.6 hours per week (a slight fall from 16 hours in 2006), although almost a third of students (30 per cent) work more than 20 hours each week. Students in Leeds work the longest hours (18.7 hours), whereas Durham students work the shortest (10.8 hours); both cities take these positions for the second year running.

In total, British students taking term-time jobs expect to earn almost £2.1 billion over the coming academic year. The highest average weekly income from term-time jobs is to be found in London (£146.10). This contrasts with just £70.70 per week in Lancaster. A small number of students (8 per cent) are earning £200 or more per week, whilst those students undertaking Engineering degrees earn most on average at £123.80, compared with arts undergraduates who earn the least on average at £93.60 per week.

The most popular term-time jobs are traditional short-term money spinners like bar and shop work (21 per cent and 14 per cent respectively). More unusual term-time occupations include stage managers, photography assistants and lifeguards.

Katie Cassidy, Head of Student Banking at Royal Bank of Scotland, comments: “Our research shows that many students are taking a positive, proactive approach to managing finances by taking on part-time work. However, it is still a significant cause for concern that 51 per cent of students underestimate the amount they need to spend on rent and living costs, despite some planning and budgeting. A further one in five doesn’t even get as far as planning and budgeting. With this in mind, the student teams at RBS are keen to do everything we can to support students and their parents in the all-important process of preparing financially for life at university. We hope our Student Living Index will prove a useful tool in the planning process.

"The crucial element in managing finances effectively while studying is careful budgeting. Whilst it might be tempting to take the ‘ostrich approach’ and bury your head in the sand, it’s better to avoid problems in the first place by taking a careful look at potential incomings versus outgoings. Once at university, our in-branch student advisors can offer valuable support and advice on money management. The RBS Student Royalties Account with its £2,500 interest-free overdraft and great money-saving offers can also help to ease the financial strain.”