Uni accommodation works differently in the UK; it varies from uni to uni, but at mine in the first yeat you usually live in Halls of Residence, which are on campus. The contracts are year-long anyway and we're already halfway through the year now. They do also differ between catered and self-catered, and whether the let includes the holidays, which for me it does but in other halls it doesn't. The idea being you meet loads of people by living with them. Which is very true. In the second year you cannot live in Halls (except for medical reasons etc) so you must get a house off campus. I've got a house for next year with 3 other people sorted, so thats fine. And they're student lets so they're September to July or something. Commuting to campus is usually done with public transport (bus for me next year). Here there is no free parking, and very few spaces anyway.
Frankly I love halls, although I am really looking forward to next year. I can see that in your first year (3 terms per year btw) it is better to be in halls, but then to move out afterwards.