NatWest warns customers born in these years will notice £157 less in bank account

NatWest has found average rent for students is rising by as much as 17 per cent year-on-year - and household bills are now the second biggest expense, having reached £157, increasing 358 per cent since 2023. Just over half run out of money before the end of term, the bank found.

The bank's NatWest Student Living Index was released in conjunction with A-Levels results day yesterday (Thursday August 15). The national average monthly rent for students now stands at £689.43. London is the most expensive city in the UK for students to rent, with an average cost of £1,031.60 per month, up 23 per cent from 2023.

Household bills have jumped to the second biggest spend for students at university - aged 18 to 21, so born in 2003 to 2006, overtaking supermarket spending. Household bills have increased by 358 per cent, costing students on average £157.78 per month, up from £34.48 per month in the previous academic year.

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52 per cent have found themselves running out of money by the end of term – up from 46 per cent in 2023. Just 19 per cent of students are confident in their money management, the high street bank has also found. Jaimala Patel, Head of NatWest Student Accounts, said: “Students are proactively making changes to increase their income, through part-time work and reducing spending when socialising with friends.

"This highlights the impact everyday spending is having on student finances, and the measures they are going to mitigate the effects, a positive sign that students are feeling more comfortable in budgeting than in previous years.

"We provide a range of tools to help students, including spend categorisation in our mobile app and a Round Ups tool to help develop a strong savings habit.” NatWest’s Student Living Index covers 32 student towns and cities, looking at the spending habits, lifestyle and motivations for students across the UK and uses the information to determine the most affordable city for students to live in.