What is causing the rising cost of living?

Whether you have already moved into your new student home or are doing so in the next few months it’s impossible to ignore the impact of the current cost of living crisis. 

There are several contributing factors that are causing this rise. The main driver is the rapidly increasing cost of wholesale energy which is being felt right across the globe.  

First introduced in January 2019, the energy price cap dictates the maximum amount suppliers can charge for energy per unit. The price cap is reviewed and amended accordingly every six months (in April and October). However, due to the current volatility of the market, the price cap is now reviewed every three months, in January, April, July and October.

In April 2022 the price cap for a typical household energy bill rose by 54%. Early predictions for the October 2022 price cap suggest typical annual bills could rise by a further 82% a potential increase of 181% overall since last year. (correct at time of writing)

At UniHomes, we believe in giving as much help and transparency to our customers as possible. UniHomes is a student property search portal and shared utility management service. Our utility prices are therefore dictated by energy suppliers. As a business our core offering is to help students find their perfect home and provide hassle-free utilities for shared student houses, making paying for your bills easier and removing the risk of damage to individual credit scores. 

 The unprecedented rise in wholesale energy along with other contributing factors are underpinning the current cost of living crisis which is impacting households the world over. 

With that in mind, we’re here to help you understand the reasons behind the cost-of-living crisis, and what we can do to help students who are moving into their next student house.

There are a few reasons that are causing price rises for the likes of energy and food

The war in Ukraine 

One of the reasons for the current instability in the energy market is the war in Ukraine. As a response to Russia’s invasion of Ukraine, many EU countries (including the UK) have placed a series of sanctions on Russia’s economic activities This has led to countries having to source oil and gas from other places. Previous dependencies on Russian oil and gas means there is a lack of quick and viable alternatives to substitute in the short term.

 In addition, pipelines that carry gas from Russia to key European countries such as Germany are running at a reduced capacity (5% of full capacity at the time of writing). 

COVID-19 impacts

As the world went into lockdown less energy and resource were required to power the likes of offices and factories. This resulted in many energy companies scaling down their operations during the height of the pandemic. However, as the lockdown eased there was significant demand for energy which in turn drove up prices within the energy market. 

The weather

Weather conditions the world over have had impacts on the current supply of energy. The lack of wind here in the UK over the last year has meant lower than usual reserves of renewable energy generated by wind turbines. Incredibly warm temperatures last year in the likes of China saw significant pressures placed on oil and gas for the likes of air-conditioning. 


Students moving into their new properties this year will notice utility prices have increased compared to previous years and unfortunately the volatility of the energy market is making it hard to lock in fixed rate deals. We understand the challenges this presents and unfortunately, student loans have not increased to balance the overall rising costs of living. 

If you are struggling with the current cost of living crisis, your university may offer guidance and support. It is recommended you seek advice through the student’s union or directly through your university. 

UniHomes are committed to providing a helping hand to students who are entering the housing market for potentially the first time. We pride ourselves on being more than just a house-finding portal and utility management service; our aim is to be a one-stop shop for everything a student needs to live comfortably and safely in a new city.

The October energy price cap is set to be announced on Friday 26th August. As we learn more about the extent of the increases in the cost of energy, we will communicate further advice and options available over the coming months.

Sources: 

• Reuters Factbox - Russia's oil and gas revenue windfall
• BBC - What are the sanctions on Russia and are they hurting its economy?
• World Bank - Commodity prices surge due to the war in Ukraine
• Economics Observatory - What does the war in Ukraine mean for the geopolitics of energy prices?
• Energy Saving Trust - Why are energy bills going up?
• Money Saving Expert - What is the energy price cap?
• House of Commons - Domestic energy prices research briefing
• BBC - What is the energy price cap and how high will bills go?
• The Guardian - UK energy bills forecast to hit £4,266 a year from January