The ultimate student renting guide

Moving out of university halls and into privately rented accommodation can be one of the most daunting aspects of student life – for parents and young people alike.

The prospect of finding a house, dealing with estate agents and putting down a deposit can often be intimidating for those who are living away from home for the first time.

Parents too, will be feeling nervous and wondering what they can do to lighten the load.

Telegraph Money’s guide to student renting covers all you need to know – including how to become a landlord while at university. In this guide we will cover:

• How does student renting work?
• What is a guarantor – and who is eligible?
• Different types of student tenancy agreements
• When to start looking for student accommodation
• How to find student housing
• How to set up a standing order
• What if I’m late on a rent payment?
• Where does my deposit go?
• Will I get all of my deposit back?
• Do I need to pay council tax?
• Buy for Uni mortgages: how they work

How does student renting work?

The first step towards securing a student house is deciding who you want to live with.

It’s important not only to consider who your closest and most trustworthy friends are, but also to think about how well you would really get on in the same living environment.

Someone who is great fun on a night out might not be someone that you want to share bills, chores and a kitchen with.

If you decide that you would rather not live with friends, or if you don’t feel that you have a close group of friends to move in with, don’t panic.

It’s possible to find new housemates or individual rooms to rent through sites like Spareroom and OpenRent, and your university or student union may also be able to put you in touch with other students who’ve found themselves in the same situation.

From there on out, student renting works much like the normal rental market, says Tom Allingham, of Save The Student.

“Fundamentally, the student rental market operates in the same way as the general rental market, with private landlords making their properties available to rent either directly, or via an estate agent,” he explained.

“However, there are some key differences – in particular regarding the length of your tenancy, when you should start looking and the type of contract you’ll sign,” he added – more on that later.

What is a guarantor – and who is eligible?

A guarantor is someone who agrees to be on the hook for your rent in the event that you don’t pay it yourself. You will likely be asked to find a guarantor for your student house unless you have rented in the UK before.

Many students rely on their parents to be their guarantors, but anyone who is over the age of 18 will qualify, provided that they have good credit history, a stable income and savings.

Landlords can reject a guarantor if they don’t own property or don’t live in the UK.

Different types of student tenancy agreements

Tenancies can be one a “joint” or “individual” basis.

If you have a joint tenancy, you will be responsible for both your share of the rent and the rent paid on the entire property, whereas if you have an individual tenancy you will only be responsible for the rent paid on your bedroom.

If you are moving into an empty property with a group of other students, then you will likely have a joint tenancy. If you are moving into an existing household where other students already live, then your room may be leased to you individually.

If given the option, though, it’s best to opt for an individual contract “on the off chance that one of your housemates ends up being unreliable”, Mr Allingham advised.

Most properties come with rental contracts that last for 12 or 24 months. However, you may be able to persuade your landlord to let you sign a nine-month contract, meaning that you won’t have to pay rent over the summer holiday.

You may also be able to ask your landlord for a “break clause”, meaning that you can leave your tenancy early without paying extra fees in the event that something goes wrong.

When to start looking for student accommodation

When to start looking for a house or flat to share often depends on where you go to university.

If you live outside of London and other big cities, you may need to start looking for somewhere to rent as soon as possible, as student housing can be in short supply.

According to Save The Student’s most recent research, one in four students start seeking accommodation for the next academic year before the end of November, and half start looking before February.

The rental market in London moves much more quickly though, and so you may be able to leave your house search until the beginning of the long summer holiday if you attend a London university.

If you want to move into an existing household and lease an individual room, then you can start looking well in advance of your moving date – but it can be possible to find a room within a month or even a few weeks if you’re in a pinch.

How to find student housing

“Although you can use sites like Zoopla and Rightmove, it’s probably best to start with any student letting agencies in your area as you’ll have a guarantee that each landlord is happy to let to students,” Mr Allingham said.

“In theory, going through an agency should offer an extra layer of security as they’re more likely to play by the rules,” he said.

“But the costs can be higher, and there will be some rogue agents out there. To minimise the risk, check with your university’s accommodation service first to see if they have a list of approved agents and landlords in the area.”

To be really proactive, you can even ask local estate agents to add you to their mailing lists, so that they can email or phone you when a property suiting your budget and move-in date goes onto the market.

How to set up a standing order

A standing order is an instruction given by you to your bank, which allows your bank to move money from your account into your landlord’s account to pay your rent each month.

It’s important to set up a standing order so that you don’t forget to pay your rent.

The easiest way to set up a standing order is to use your bank’s online portal or mobile app. You will need the name and account details of either your landlord or your letting agent, depending on who your rent needs to be paid to – you can find this out by reading your contract.

What if I’m late on a rent payment?

If you’ve missed a rent payment, this means you are in arrears and owe your landlord money.

Your rent payment becomes late if you don’t pay it on the day it’s due, and your landlord can take action to evict you from this point onwards. Exactly what happens though will depend on your tenancy agreement and the quality of your relationship with your landlord.

“Assuming it’s stated in your tenancy agreement, you can be charged interest on outstanding payments – but only if they’re late by 14 days or more,” Mr Allingham said.

If you think you might not have enough money to pay rent, you should speak to your landlord as soon as possible to explain the situation.

It can be helpful to give them an idea of when you will be able to pay your rent, or to offer to pay as much of your rent as possible, even if it isn’t the full amount.

Where does my deposit go?

When your landlord receives your deposit, they are legally obligated to put it into a deposit protection scheme within 30 days.

This guarantees that you will get your deposit back so long as you meet the terms of your tenancy agreement, pay all of your rent and bills and avoid damaging the property.

There are three government-approved deposit protection schemes, and you should be provided with details of where your deposit is being kept.

Will I get all of my deposit back?

To get your deposit back at the end of your tenancy, you must contact your landlord or letting agent to ask for it.

Your landlord can make deductions from your deposit if they have grounds to do so. This will usually happen if you have failed to pay some of your rent, damaged the property in some way or lost or broken an item that belongs to them.

However, your landlord can’t charge you to cover “reasonable” wear and tear.

More than 18pc of students report problems with getting their full deposit back, according to Save The Student, so take good care of your property and try to avoid any damage.

If you don’t agree with a deduction to your deposit that your landlord has made, the first thing to do is to speak to them directly and discuss the issue.

If you can’t come to an agreement then you can speak to the deposit protection scheme where your money is held and use their dispute resolution service to sort the problem out.

Do I need to pay council tax?

If you’re studying full-time, then you’re exempt from paying council tax. Your council may ask for proof that you are a student, which you can obtain from your university.

However, if you’re sharing a house with someone who isn’t studying full-time, then the property will be liable for council tax and you will get a bill.

Whether the non-student housemate pays the whole bill or you decide to split it between you is up to you. If only one member of your household is a non-student, then they can apply for a single person council tax discount of 25pc.

If you need to suspend your studies, you may have to start paying council tax for the period that you aren’t studying. You should inform the local council about any change in your circumstances and ask your university or student union for guidance, to avoid being hit with a surprise bill.

Buy for Uni mortgages: how they work

After reading all that you’re probably thinking it might be easier to be your own landlord.

Some building societies offer “Buy for Uni” student mortgages of up to 100pc of the purchase price.

A student can rent up to three rooms out to their friends in order to cover their mortgage payments, meaning that they can live in the property essentially for free, potentially saving the Bank of Mum and Dad thousands of pounds in the long run.

Bath Building Society offers student mortgages on a joint borrower sole proprietor basis – a son or daughter would be the only borrower on the deeds, while the parent will be the joint borrower on the mortgage.

There are no early repayment charges on the Buy for Uni mortgages offered by Vernon Building Society, meaning that you won’t be charged extra fees to convert to a residential or buy-to-let mortgage after their studies end.

So, after graduation, the child can continue to live in the property themselves – either with or without tenants – or sell it, or continue letting it out without living there.

But parents should be careful when getting into an arrangement like this, said David Hollingworth, associate director at L&C Mortgages.

“As students have little to no income, parents will often be rolled in to help with affordability checks. On top of that, with a 100pc mortgage, there will be the added expectation of additional security – often in the form of cash or spare equity on the parents’ home,” he explained.

“Then there’s the cost of buying and selling,” Mr Hollingworth added. “If those things are happening in a short space of time, because your child wants to sell up once they graduate, then those costs will weigh much more heavily.”

What’s more, helping a child with this sort of scheme could affect a parent’s borrowing prospects, as being on the mortgage jointly in order to bring your income into consideration for affordability will make you liable for your child’s mortgage payments.

“However, if it does fit with your long-term financial plans, then this can be a really helpful option, even if it is still somewhat niche,” said Mr Hollingworth.

This article was first published on 25 July 2023 and is kept updated with the latest information