Newcastle was ranked by QS Best Student Cities 2027 in the top 10 most affordable UK cities. However, the effects of rising rent prices is testing the city’s status as an affordable place to live, especially during the current cost of living crisis.
When compared to the national average, the city is above the rate at which rent prices have been rising. As of September 2026, Zoopla ranked Newcastle as the 2nd highest city in the UK for year-on-year rent prices, increasing by 4.2% to an average price of £931 per month in 1-4 bed properties. It is important to recognise that it is still well below the UK average of £1343.
The rise in rent prices is reflected across both the public and private rental sector, as well as the purpose-built student accommodation market.
Jesmond, one of the most popular student areas in Newcastle, is known for its reputation as an expensive area to live in, and is no exception to this trend. This has led to many students to search beyond Jesmond when house hunting, turning to Sandyford and Heaton, in particular.
Those in purpose-built student accommodation, primarily first-year students and international students, are also bearing the burden of rising rent prices. With Park View, one of the university’s main students’ accommodations, now costing £197.40 per week. This marks nearly a 47% increase since 2018, compared to the price of £134.33 per week, when the accommodation was first opened to students.
This era of rent rises is further exacerbated by the fact that the annual increase of student Maintenance Loans remains well below the growth rate of prices.
Undergraduate students studying in the 2026/ 2027 academic year only qualify for a 2.71% increase to maximum loans for living costs. This is much lower than the aforementioned 4.5% expected increase in UK rent prices for this calendar year.
Many students now face the harsh reality that their maintenance loan cannot even cover their rent, let alone their living expenses.
Consequently, meaning that the money in students’ pockets is being squeezed even more as their loans are disproportionately spent on covering rent costs. Many students now face the harsh reality that their maintenance loan cannot even cover their rent, let alone their living expenses.
If you are a student struggling with the rising cost of rents and living expenses, you can contact Newcastle University student financial support and request help.