Well, Cambridge isn’t typical of university settings as all undergraduate students are required to live in their college. In most unis many will live out. They are also required to leave college accommodation in the holidays whereas in most unis they can be there all year round.
Halls are often catered, not all are en suite and kitchen facilities are shared.
Policy sounds sensible to me at first glance.
However, I do think there should be provision to help any student who doesn’t have family support with the cost of moving out. It does say that in exceptional circumstances the college will assist with finding accommodation for these students.