Living out in first year would be a really bad move, just because that's the best way to get to know people and you can have some seriously good times in freshers accomodation. During my freshers year there was a flooded room so one fresher had to live in a room that wasn't in Cripps, and even though it was literally a minutes walk away they felt so isolated.
However, a lot of my friends live out in their own accomodation in 2nd and 3rd year. This is mostly because they either did badly in the room ballot and want a really nice room, have requirements like they need on site cars, or just want to do their own thing without the constraints that college place upon accomodation. Popular sites are Emma Road and Storey's Way. Most of these people though do have a bit more money than the average student.