Data from SpareRoom says that renters in London need around £39,000 as a minimum salary in order to be able to afford a room to live in. Whereas, in Nottingham and Exeter you can find a balance of entry-level job opportunities and affordable living costs – making these cities more attractive to recent graduates. Other cities have lower rental costs but this is paired with lower career opportunities also.
Incomes and rent
For graduates deciding where to start their careers, it can be valuable to compare local job opportunities alongside living costs in different areas.
- London
Being the capital of the UK, this city averages the highest earnings but this meets the city’s inevitable higher cost of living. With average room rents at roughly £995 per month, according to The Telegraph. Assuming that housing costs are kept under 30% of your average income, a worker needs an income of at least £39,804 for their rent to be deemed affordable.
- Nottingham
Due to entry-level jobs rising fast, Nottingham emerged as a top graduate hub. Low rents helped to solidify this status with average monthly rent for a room sitting at just £581 according to the Property Reporter.
- Exeter
Ranked as another top city for recent graduates, Exeter is praised for high growth in entry-level jobs with the Workplace Journal stating that average monthly room rent sits at £662.
The North-South divide
Beyond London, Nottingham, and Exeter, a number of other UK cities offer a strong combination of affordable rental accommodation and attractive career prospects for recent graduates and young professionals.
Evidence from major property portals and research into rental affordability points to a significant North–South divide, with northern England, Yorkshire, and Scotland offering some of the UK's most affordable rental markets.
Top affordable graduate cities
Thanks to their affordable living expenses and thriving graduate job markets, the following cities are often recognised as some of the best-value locations for recent graduates (featuring strong job markets while enabling renters to keep housing costs at or below the recommended 30% of a typical graduate starting salary):
- Belfast: Average room rent of £539 per month and £779 for a private one-bedroom flat. The city is consistently recognised as one of the UK's most affordable destinations for students and graduates, offering particularly strong value when local wages are taken into account.
- Liverpool: Average room rent of £503 per month and £662 for a private one-bedroom flat. Housing costs remain highly affordable, with rent accounting for around 29% of the typical graduate salary.
- Sheffield: Average room rent of £504 per month and £669 for a private one-bedroom flat. The city combines relatively low housing costs with a thriving graduate community and a strong employment market.
- Birmingham: Average room rent of £516 per month and £729 for a private one-bedroom flat. As the UK's second-largest city, Birmingham continues to offer excellent value compared with many locations in southern England.
- Newcastle upon Tyne: Average room rent of £545 per month and £705 for a private one-bedroom flat. The North East remains one of the UK's most affordable regions for renters, providing strong value alongside growing career opportunities.
[Data according to SpareRoom.]
Lowest cost places
Northern industrial and coastal towns offer the cheapest overall rents nationwide but sometimes at the cost of lower paying careers.
According to Zoopla and Essential Living, the average monthly rent in Bradford is around £472, while a private one-bedroom flat in the city centre costs approximately £520 per month.
Hull offers similarly competitive prices, with average rents of £512 and city-centre one-bedroom flats averaging £500.
In Sunderland, renters can expect to pay around £486 per month on average, with city-centre one-bedroom flats typically costing between £460 and £500.
Blackpool remains one of the UK's lowest-cost rental markets, with average monthly rents of £510 and city-centre one-bedroom flats available for around £460.
Meanwhile, Stoke-on-Trent maintains relatively affordable housing costs, with average monthly rents of £542 and city-centre one-bedroom flats averaging approximately £550 per month.
