All-Inclusive vs. Pay-As-You-Go Housing Options for Students

When searching for student accommodation in the UK, one of the most important decisions you'll face is choosing between all-inclusive rent and pay-as-you-go (PAYG) housing. Both options have their advantages and drawbacks, and the best choice often depends on your lifestyle, budget, and comfort level with managing utilities.

With the cost of living increasing-UK inflation averaged 5.2% in 2024, according to the Office for National Statistics (ONS)-students are becoming more conscious about budgeting. Understanding the difference between these two housing models can help you save money and avoid surprises throughout the academic year.

In this guide, we break down the key differences between all-inclusive and pay-as-you-go student housing in the UK, share real cost examples, and provide expert advice to help you make an informed decision.

What Do These Terms Mean?

All-Inclusive Housing

This means your rent covers everything: utility bills, Wi-Fi, water, gas, electricity, and sometimes even contents insurance and gym access.

Pay-As-You-Go Housing

This model requires tenants to pay rent only for the space, with separate bills for gas, electricity, water, internet, and other utilities. You manage and pay these bills yourself, typically with housemates.

Side-by-Side Comparison Table

Cost Comparison: Realistic UK Monthly Budgeting (2025)

Example: 1 Room in Shared Accommodation in Manchester

Note: PAYG can become more expensive during winter due to increased energy use. Prices based on 2025 estimates from Save the Student, UniHomes, and OpenRent.

Pros and Cons of All-Inclusive Housing

Pros

• Budgeting made simple - one fixed monthly fee

• No need to chase housemates for shared bills

• Ideal for first-year or international students unfamiliar with UK utilities

• Often found in secure, well-maintained PBSA buildings

Cons

• Slightly more expensive overall

• Less control over individual energy use

• May include unnecessary services (e.g. gym, cinema room) you don't use

Expert Insight from Student.com UK:

"All-inclusive housing removes financial guesswork and is often the best choice for students prioritising convenience and predictability."

Pros and Cons of Pay-As-You-Go Housing

Pros

• Potentially cheaper if utilities are used efficiently

• More control over how and when energy is used

• Common in private shared houses, offering greater flexibility

Cons

• Utility bills fluctuate monthly, especially in winter

• Requires teamwork to split bills fairly

• Late payments can damage your credit or disrupt services

Advice from a Lettings Manager at UniHomes:

"If you're confident managing household bills and want more say in your lifestyle spending, PAYG housing can be more economical long-term."

Which Students Should Choose What?

Where to Find Each Type of Housing in the UK

All-Inclusive Housing Platforms

• Unite Students

• AmberStudent

• Student Roost

• Student.com

Pay-As-You-Go Housing Platforms

• SpareRoom

• Rightmove Student

• OpenRent

• Local Facebook rental groups

Checklist: Questions to Ask Before Signing Your Housing Contract

• Is Wi-Fi included in the rent?

• Are utility bills capped or fully covered?

• What happens if energy usage exceeds a set limit?

• How are repairs and maintenance handled?

• Is there a cooling-off period after signing?

Choose Based on Your Lifestyle & Budgeting Skills

There's no universal answer when it comes to all-inclusive vs. pay-as-you-go student housing in the UK. Each option caters to a different type of student and lifestyle.

• Choose all-inclusive for convenience, predictable costs, and stress-free living.

• Choose pay-as-you-go for flexibility, potential savings, and more control over utilities.

The best housing choice is one that fits your academic schedule, financial situation, and social preferences.