Rent and Credit > Living at Home vs Renting: A Student's Guide to Costs

Living at Home vs Renting: A Student's Guide to Costs

Wollit Team2 minute read · Updated 27th August 2025

Deciding where to live at university? This choice affects your finances, social life, and entire uni experience. Let's break down what each option actually costs so you can make the right decision for you.

The Money Reality

Living at home saves serious money. Most students save between £3,000 and £8,000 a year by staying with family compared to moving out. That's a massive difference that can reduce your need for student loans or part-time work.

At home, you'll likely pay:

A contribution towards household bills (like electricity, gas, water)
Your own food, or a contribution towards the family food shop
Transport to and from university

Renting means paying for:

Rent: £400-600/month outside London (often significantly more in the capital)
Utility bills: Gas, electricity, and water, which can fluctuate
Internet and TV licence: Separate costs you'll need to budget for
Food: You'll be responsible for all your own groceries and cooking
Household setup: Initial cost for furniture, kitchenware, and essential supplies

Worth knowing: While staying at home can help you save money, consistently paying rent on time is a great way to start building a good credit score, which is important for your future finances.

What Housing Options Are Out There

Your choices aren't just limited to home vs private rental.

University halls often include rent, bills, and internet in one weekly price. This makes budgeting incredibly simple and is a popular choice for first-year students.

House shares with friends can be a more affordable option if you split costs. Just make sure you choose reliable housemates who will pay their share of the bills.

Private rentals offer the most independence but also require you to handle all the bills and management yourself.

Freedom vs Family Support

Living at home offers a strong support network. Your family can be there for you when things get tough, whether it's a home-cooked meal, help with laundry, or advice on a difficult situation. This can reduce a lot of the stress associated with university life, allowing you to focus on your studies.

Moving out means you'll be doing everything yourself: shopping, cooking, cleaning, and budgeting. While this can feel scary, it's a huge learning experience that builds confidence and independence.

Your Social Life

This is a key consideration. Living at home, especially if you have a long commute, can mean missing out on spontaneous social events. Late-night study sessions or last-minute nights out might be difficult to join in on.

If you live close to campus, you're in the centre of the action. It's easier to make friends, join societies, and truly immerse yourself in campus life. However, a more active social life often comes with a bigger budget for meals out, drinks, and other entertainment.

Transport Costs

Don't forget commuting expenses. Season tickets can cost £1,000+ yearly, plus your daily travel time. Sometimes transport costs nearly match what you'd save on rent.

Making Your Choice

Create honest budgets for both options. Include everything - from toilet paper to emergency taxis.

Ask yourself:

Can you realistically afford all the costs of renting?
How much time will you spend travelling daily?
Do you need independence to thrive, or do you prefer family support?
How important is being in the centre of campus life?

The Bottom Line

There's no wrong choice here. Some students thrive at home and graduate debt-free. Others need independence to grow. Many start at home in the first year, then move out once they've found their feet.

Whatever you choose, you're making real financial decisions that shape your future. The budgeting skills and financial habits you build now - including how you handle rent payments - all contribute to your long-term financial health. Plus, if you're looking to build your credit score while at university, Wollit helps build your credit history through regular monthly reporting to all three UK credit agencies.