Hi there!
I'm a 3rd year student currently studying at Lancaster University, and have experienced both living at university as well as doing university at home. I lived in halls in first year (as many students do) and personally I believe this was a great way of getting to know many people! I was lucky enough to be really close friends with everyone I lived with in my flat in halls, and I think that 'moving out' to go to university is really an essential way to learn certain life skills that you will need in future like budgeting for food, household chores, etc. It's also a great way to earn your independence also. The main drawbacks are the cost, as well as the fact that you are not guaranteed to get along with your flatmates, but it is definitely a lot easier to be able to attend things like socials and classes during term time.
However, I was part of the Covid-cohort at university so I spent a term at home as well - I personally didn't enjoy this as much as I didn't have a space to work effectively and had no access to the library or many of the resources I would normally use in my studies, but your opinion may differ based on your circumstances. I have a few other friends who commute to nearby universities and they have struggled to integrate as well socially to their university. This may not be an issue in your case, but it would require a lot more effort to make friends and join social groups or societies being a commuter student than someone living at university, but with being a commuter student it also means that you are saving money on accommodation, so there are pros and cons.
This is just my personal opinion which is based around a lot of circumstances specific to me, but I do think that having some form of 'living at university' experience is greatly beneficial, even if you are going to a university nearby to where you lived. Hope this was somewhat helpful, let me know if you have any questions about university or Lancaster should you be considering coming here!
^Harry (Lancaster Student Ambassador)