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.

For financially-savvy undergraduates, Leeds is the most cost-effective place to study, of those surveyed, while Nottingham is the least cost-effective. During one academic year, going to Leeds could mean the average student is more than £2,238 better off – the equivalent of more than 2,800 single track music downloads.

Other main points:
- Over the next academic year, university students will spend £10.3 billion on living and accommodation costs
- However, 40% of all students will work part-time during term to earn some extra cash. In total, these hard-working students expect to earn £2.1 billion
- Despite the recent introduction of top-up fees, this is the first time that the number of students undertaking term-time employment has fallen in four years
- The most popular part-time student jobs are in bars, clothes shops and restaurants, but more unusual occupations include stage managing, photography and lifeguarding
- Despite all this hard work to help fund their academic careers, more than half of undergraduates (51 per cent) still underestimate the weekly cost of living expenses and rent at university

The Royal Bank of Scotland (RBS) has unveiled the Student Living Index – an annual report on university cost-of-living, now in its fourth year.

The research, which combines and analyses weekly expenditure data for rent and a selection of essential and non-essential items, together with weekly earnings figures from part-time work, reveals that Leeds is the most cost-effective place in the UK for undergraduates to study. Leeds offers a winning combination of relatively inexpensive living costs together with the third highest weekly earnings from part-time work.

The RBS Student Living Index, which was first published in 2004, ranks Britain’s major university towns by plotting average student expenditure on living and housing costs against income from term-time employment.

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 £2,2382 – 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.

RBS Student Living Index – Full Rankings
1 Leeds (2)
2 Brighton (15)
3 Dundee (11)
4 London (8)
5 Liverpool (9)
6 Leicester (18)
7 Birmingham (16)
8 Glasgow (13)
9 Bristol (10)
10 Newcastle (19)
11 Sheffield (22)
12 Coventry (3)
13 Cambridge (26)
14 St Andrews (4)
15 Manchester (5)
16 Cardiff (1)
17 Durham (25)
18 Aberdeen (24)
19 Belfast (6)
20 Canterbury (14)
21 York (17)
22 Bath (20)
23 Edinburgh (7)
24 Oxford (23)
25 Lancaster (NE)
26 Southampton (12)
27 Nottingham (21)

Rankings according to the 2006 Student Living Index are indicated in brackets after the name of each university town. ‘NE’ bracket denotes that this town is a ‘new entry’ in the research.

The RBS research also 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 rent; £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.

Katie Cassidy, Head of Student Banking at Royal Bank of Scotland, commented: “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.”