First Job, first flat: Data reveals Dundee is an affordable UK city for New graduates
Many fresh grads are finding their first paycheques swallowed whole by sky-high rent. Moving Expert reveals which cities have the most affordable rent.
For many university graduates in the UK, the cap-and-gown ceremony marks more than the end of academia. It’s supposed to be the beginning of financial independence, career growth, and perhaps even a first apartment. However, for thousands entering the workforce, the dream of living and working in the city of their choice is being crushed by an uncomfortable truth: rent costs in many UK cities now consume more than half of a graduate’s salary.
According to new analysis from Wolf River Electric, average graduate salaries across several key UK cities fall far short of what’s needed to rent a one-bedroom flat. Fortunately, there are cities bucking the trend:
Top 10 UK Cities Where Rent Is Below 30% of Graduate Income
| City | % of Income Spent on Rent |
| Sunderland | 14.16% |
| Dundee | 20.00% |
| Bradford | 22.68% |
| Doncaster | 22.87% |
| Carlisle | 25.92% |
| Stoke-on-Trent | 26.32% |
| Gloucester | 27.65% |
| Derby | 27.93% |
| Kingston upon Hull | 28.01% |
| Aberdeen | 28.17% |
Sunderland tops the list of most affordable cities for new grads, with rent accounting for just 14.16% of a typical graduate income. Dundee (20%), Bradford (22.68%), and Doncaster (22.87%) also offer young professionals room to breathe and save.
These lower-cost cities may not carry the same cachet as London or Oxford, but they are increasingly attractive for graduates prioritising financial freedom over status postcodes. Many of these cities also offer growing employment opportunities and access to remote or hybrid work options.
Top 10 UK Cities Where Rent Exceeds 50% of Graduate Income
| City | % of Income Spent on Rent |
| Westminster | 96.34% |
| London | 81.63% |
| Oxford | 67.59% |
| Bristol | 60.72% |
| Milton Keynes | 54.36% |
| St Albans | 53.15% |
| Edinburgh | 52.62% |
| Cambridge | 52.07% |
| Brighton & Hove | 52.04% |
| Bath | 51.89% |
London has long been known for its expensive property market, but the figures go beyond shocking. In Westminster, new graduates spend a staggering 96.34% of their net income on rent. London-wide, the figure remains sky-high at 81.63%. And it's not just the capital: Oxford (67.59%), Bristol (60.72%), and Manchester (51.27%) all rank as cities where a graduate’s salary barely covers the cost of a modest flatshare.
These figures are calculated using average regional graduate earnings from the Graduate Outcomes 2021 dataset and the most recent monthly rent data.
What’s Driving the Graduate Housing Crisis?
At the heart of the issue lies a mismatch between graduate salaries, housing supply, and regional opportunity. High-paying graduate jobs are often concentrated in cities where the cost of living is least manageable. Meanwhile, cities offering more affordable housing often lack the same density of graduate-level roles or high-growth industries, though this is beginning to change.
A significant number of graduates are now opting to move back home with parents, delay relocation, or work remotely while living in lower-cost towns. Others are resorting to house shares or even long-distance commuting.
Time for a Rethink: Where Should Grads Really Start Their Careers?
The data makes one thing clear: choosing a post-university city is a matter of survivability. As more employers embrace hybrid work models and regional talent development, now is the time for graduates to think beyond traditional hubs.
Likewise, universities, policymakers, and employers must work together to close the gap between graduate pay and real-world expenses. Without intervention, we risk creating a generation of workers who are employed but perpetually struggling.
Takeaway for Graduates
- If you’re considering where to launch your career, look beyond London.
- Use your degree wisely, and pair it with affordable living.
- Consider regional cities with lower rent burdens and growing industries.
- Ask yourself: Do I want a postcode or peace of mind?
“As someone who helps young professionals move across the UK, I’ve seen a noticeable shift in graduate migration patterns over the last five years. More grads are bypassing London and other traditional career hotspots, not because they don’t want to live there, but because they simply can’t afford to. When rent consumes 70% or more of your salary, you’re not really living. You’re just trying to survive.
We’re seeing a rise in demand for removals to cities like Sunderland, Derby, and even remote-friendly commuter towns. Graduates are more open than ever to prioritising value for money, especially as hybrid work becomes more common. My advice? Run the numbers before you commit to a city. The prestige of a postcode isn’t worth the financial strain that follows. Living affordably in a less ‘trendy’ city can actually give you the financial headroom to grow professionally and personally,” says Moving Expert, Justin Nielsen from Wolf River Electric.