Is London Actually Affordable? A 2026 Student Budget Breakdown

Living in London is often perceived as a financial challenge for students, but with a strategic approach to monthly spending, the capital remains a viable and enjoyable place to study. For the next academic year, many students will be aware that their biggest outgoings will be accommodation and transport. Though expensive, these can be managed through early planning and by taking advantage of student-specific concessions.

Below is a quick reference guide you can use to save money in London this year and beyond.

Expense Category	Typical Monthly Estimate (2025/26)	Money-Saving Strategy
Accommodation	£900 – £1,500+	Book Purpose-Built Student Accommodation (PBSA) with bills included
Food & Groceries	£160 – £300	Shop at budget supermarkets and use student discount apps
Transport (Zones 1-2)	£90 – £100	Apply for an 18+ Student Oyster photocard for 30% off
Personal & Leisure	£250+	Leverage free London museums and student gallery nights

How Much Does Student Rent Cost in London?

According to general market data for the 2025/26 cycle, student accommodation in central London zones typically ranges from £900 to £1,500 per month. Rent usually swallows a significant portion of your maintenance loan, which for many students in the capital is approximately £13,762 for the academic year.

Choosing a student housing provider like us can help manage these costs because utilities, internet, and communal amenities are typically included in your rental agreement. This removes the risk of fluctuating energy bills, which can often add an extra £50 0 £100 to your monthly expenditure.

What Are the Essential Costs of Living in London?

Outside of rent, food and transport are your primary considerations when studying in London. Most students can expect the following monthly expenses:

• Groceries: Often £160 to £300 depending on your habits. Shopping at budget-friendly shops such as Aldi or LIDL alongside meal prepping is a common way to keep costs down.
• Transport: If you are using the Tube or bus regularly, a monthly Travelcard for Zones 1-2 with an over-18s Oyster photocard discount will cost around £90 to £100 per month.
• Study Materials: Books and equipment can vary by course, but many students save by using university library resources or buying second-hand from previous students.

Insider Tips for Budgeting in London

• The 30% Rule: Always apply for your Student Oyster card as soon as you have your university details. This provides a 30% discount on Travelcards as well as Bus and Tram Passes, which help travel around the city.
• Student Discounts: Use apps like UNiDAYS or TOTUM at major retailers. Many high street brands and restaurants near University College London, and other prestigious universities, offer substantial savings.
• Free Culture: Remember that many of London’s world-class museums and galleries are free to enter. This provides some amazing experiences without impacting your wallet.

Final Thoughts

Being sensible with your budget is the most effective way to ensure a smooth transition into life in London. While the city is known for its higher cost of living than northern cities such as Manchester or Newcastle, being smart with your money makes it go further.