London rental problem

[DrivingMissMaisy]

DD is coming to the end of her first year at a central London uni.
Before she chose London she costed out going to London vs a non-London uni and decided she could afford it based on our contribution and her savings from her weekend job whilst at school and Summer holiday earnings.

She found a group of course friends to rent with and they decided they would look at a maximum budget of £170 per week (DD's maximum budget). They are now wanting to spend £190-200 for a nicer place but DD just won't have the money and is getting quite stressed about it. We are far from London and I really don't know how to advise her. She has said she's happy to have a box room if she can pay less but this is proving a challenge. She's worried she will be left out in the cold.

We could perhaps scrape together a bit more to help (we already pay her several hundred pounds a month)
Is £170 (excluding bills) for a Zone 1 room unrealistic?

Have other people had this issue?

I think somewhere on the UCL website it suggests £890 a month is required for living expenses plus food.

Can she see if there are others looking to.share at a lower rate?

That's reassuring, £890 for everything would be doable.
I did suggest looking for another group but they are her (new) closest friends and it didn't go down well.

It has really opened my eyes to the yawning gulf between London and non-London people. All her friends bar one are Londoners with parents who have seemingly very deep pockets to pay rent for their offspring to live in the same city! We are very much the "squeezed middle" unfortunately.

But just wondering what other DC (preferably of typical non-London parents) pay for their student houses?

One solution, if the others can agree to it, might be to consider a property with rooms of different sizes. She takes the box room and pays less.

I think DS paid around the £180 mark for four of them to live in a central three bed ex-Council flat close to University. They gave up the living room. Some overseas students friends, shared rooms to bring down the costs whilst remaining close to the University. I suspect none of the properties were particularly nice, but the areas were safe and studying and socialising happened mainly on campus.

It is important to factor in both travel time and cost. Obviously Zone 1 is hugely popular with both students and workers, so there is a large premium. So effectively out of the reach of most Londoners.

Your DD has a choice. She has richer friends and can't really afford to keep up. This would probably be true at quite a lot of Universities, and she is not the only London student who would struggle. The choice she has to make is whether it is worth investing on living close to the the University. No fares, more time to study, easier to take part in University life. And can she find the money. If not she might need to find another group to share with.

My sons are renting (not London) from september and i think each house has a smaller room which is less to rent in terms of cost. If that isn't possible perhaps she could find a job to make up the difference? London is probably easier to find casual jobs in than some places. (My son cycles for Deliveroo when home - we live right out in zone 5 slumming it, no zone 1 for us)

it doesn't always work out that way though. ds3 is moving into an 8 bed house in september and his room is the smallest but the agency is insisting on splitting the rent 8 ways. He volunteered to have the smallest room as he has the box room here and is used to it. Its not much smaller than his room in halls but a lot lot cheaper even with bills included.

ds1 was in London and paid £630pm for a room in a shared house - it was basically a cupboard but he loved it and would move back tomorrow if he had the funds.

My DD also divided the rent according to room size. The agent didn’t mind as long as the total paid was correct. Hopefully the agent will be flexible if DD has a smaller room.

London is ultra expensive but £200 a week per person seems a lot. This must be zone 1 and possibly not a student flat. DD, until recently was paying £850 a month pp for a 2 bed flat in zone 1. £1700 per month between two people and that had a consierge, gated, private and was modern. If they went further out they should get better value than that. Some flats can be horrible and I guess they are trying to avoid these.

Also the London rental market is cooling in some areas, but not all. That’s why they need to look around.

You may also have to reconsider your financial contribution. I don’t know how much you are giving, but the extra student loan for London doesn’t add up to riches and parents do end up paying more. I can fully understand why your DD does want to stay with her friends and perhaps she could earn over the summer so both you and her put extra in?

What areas is she looking in?

Bubbles, was this when your daughter was a student. I think she is now a successful barrister. It is quite common for young professionals to choose to live the urban dream in nice flats in expensive parts of London, before settling down in the ‘burbs.

Students tend to congregate in different areas. Not least because they are not bothered about being surrounded by flash bars and restaurants. DS was in Bloomsbury, but UCL students tend to head north to Camden and beyond.

OP, she might ask the others about the unequal room option. You may well find that they, or their parents are happy to pay even more to both live where they choose and also have the biggest room.

The point I was making, needmoresleep, was that the money the OP’s DD is considering spending is what someone earning pays! IE: it’s too much for a student!

I think Camden rents are now pricey (certainly flats to buy are) and students love lively areas such as this. If they are looking at lovely non student flats in Camden they will be £200 a week pp. So, they need to go further out or compromise on the quality of the flat.

This is all really useful, thanks. It sounds as though she really should be able to find somewhere for £170, especially if she can persuade her friends and the letting agent to accept unequal rent.
She's at UCL. They started off looking at Archway (too far and too quiet for DD's friends), then Camden (expensive for quite far out) and are now looking even more centrally in Bloomsbury, Mornington Crescent and near Euston and King's Cross. DD found one in her price range in Clerkenwell.

The trouble is I have no clue about London areas. It's interesting to hear that rents in some areas are cooling. If you are aware of any which aren't too far from UCL and safe for a group of girls please do let me know, PM s welcome!

She already has a full time Summer job lined up and has worked on and off in a casual catering job whilst at uni so I'm not sure she can earn much more how much more still keep up with het studies (it's a high contact hours course).

Sorry that should have read "I'm not sure how much more she can earn and still keep up with her studies".

Look at Tufnel Park and Chalk Farm. Anywhere on the Northern line. Camden is only one stop from Mornington Crescent. MC is fine. Kings Cross is being regenerated. No longer cheap but has mixed housing. Clerkenwell is fine but check transport links to UCL. It’s further East.

Every area in London is ok. There aren’t really “no go” areas any more. Most violence is gang based. The main thing is to be aware of anything suspicious. Cheaper rentals are often on council or ex council estates. Look to see how many are sold and what the general area looks like. Often students live in similar areas so they are safe. I think Bloomsbury can be pricey but is very handy for UCL.

Rightmove has plenty in Tufnell Park for her budget.

ds had a version of this accommodation guide when he was looking. He wasn't at UCL but another constituent institution of UoL. It contains a map giving you an idea of rental prices around the capital and in the hard copy of the one ds had, it had descriptions of different areas around the capital where students typically lived.

Ds found Senate House has a good accommodation office covering all constituent institutions of the UoL where I'm sure your dd could pick up the current guide.

My DS is looking in north London at the moment for when he starts a job. It is so expensive, and I say that as someone who has lived here for 30 years. He's looking at around £160, on the Northern Line, and there's not much that is habitable ... but it's not £160 ... it's £160 + utilities, internet, council tax and so one. Poor things ...

All the flats will be plus utilities. However, at least students do not pay Council tax!

I think £160 pw is a bit low for N London - if he wants something decent. It is very hard to find somewhere. He could also look where I suggested above and perhaps add in Angel and Highbury/Arsenal and areas near the overground stops, as opposed to the underground, depending on where he is working of course.

Nothing to add from me but Dd is looking at universities and I am looking at the cost ... part of me thinks that she should just not apply to London universities. She has other ideas though.. hadn't realised how expensive it is!

Is £170 (excluding bills) for a Zone 1 room unrealistic?

I think it is, yes. Zone 2 is much more doable.

This is within budget and walking distance to UCL.
No idea how suitable it may be, but £170 pw each near UCL will probably access the swathes of ex/social homes between UCL and Mornington Crescent. Possibly even Primrose Hill but that's a 'major' schlep across Regent's Park to classes.

I think they're being hugely unreasonable about areas tbh. They want to live within a five minute walk of UCL - of course that's going to cost mega bucks. Most students live much further out. They sound a bit precious. And lol at Camden being too far away!

I really appreciate your replies, thanks. I've relayed them all back to DD and I think it's helped her keep everything in perspective. I think it may ultimately mean the group ends up splitting as some are now wedded to Zone 1 £200+ rent whereas DD and a couple of others would be very happy exploring areas around Camden and beyond.

DD says that the accommodation guide is brilliant thanks eatyourveg - and she's going to the office at senate house tomorrow- they've been doing everything online so far.

It is all good life experience for them, but it is such a big financial transaction for 18-19 year olds. At least any differences are becoming apparent before they sign a contract.

It occurred to me that if DD signs a standard 12 month joint and several liability contract with 4 others for £170 per week she is signing to accept liability for a £44,000 transaction. The thought of it makes ME nervous, let alone her- it's more than our mortgage!

ds 1 and ds3 both had contracts which meant they were only liable for their portion of the rent which made us much happier when we were asked to sign as guarantor. I think it is fairly standard now to each have separate contracts with separate liabilities but your dd would need to make sure she checks the wording on the contract.

Another thought came to me. ds1's first house was actually a private house that the UoL rented from a private landlord. He paid the rent to his university and they paid the landlord. they had to sort out the utilities themselves but it did make things easier for them all when there was an issue. The UCL managed ones are here

The UCL ones are also mega expensive. All above £170 a week and many way above £200. If the friends who want cheaper split away, then there are more options further away from the university.

I think London increasingly attracts well heeled students from the uk or abroad and London based students. Many students from “ordinary” families elsewhere in the uk are not aware of the cost of housing. When I said to friends that DD was paying £850 rent to share a 2 bed flat, they thought that was for the whole flat. It needs to be fully researched if you have a very full on degree and little option for earning. Durham and Bristol would be a lot cheaper!

I went to UCL a good few years back and stayed in London on crap pay for a while after. I lived in Harringay near Manor House tube, Tottenham, Stamford Hill and Camberwell. All a bit further than Camden but all within a bike/bus ride (bus pass way cheaper than tube). Look at convenient bus routes or faster tubes (Victoria line) and consider further out.

yes £170 is unrealistic for zone 1 but doable for zone 2. Be warned that you are likely to have be guarantor and this may also present issues. Our child's first landlord agreed to accept guarantors whose salaries covered the rent in total since one of the group couldnt make the required multiple of the rent or wasnt a home owner or something. (We didnt ask for the exact details, just got involved in advice on how to negotiate). One student paid a bit less so the group could stay together although their room wasnt smaller.

Some universities will act as guarantor if needed or there are companies like this one www.housinghand.co.uk/guarantor-service/

I paid £175 a week in year one (student halls in Bloomsbury) and £168 a week in year three (SE London Zone 2, nice flat!)