Data from flatshare site SpareRoom suggests London is now entirely unaffordable to graduates, thanks to sky-high rents.

September sees many new graduates flock to London. However, average room rents in the capital and surrounding areas are at a record high, reaching £1,013 in August.

According to SpareRoom’s latest Quarterly Rental Index, not one postcode in the capital has average room rents that are ‘affordable’ on the average London graduate salary of £29,000 (equating to a monthly take-home of £1,932 after tax). 

This is based on traditional affordability standards, which state rent shouldn’t cost more than 30 per cent of your income.

But SpareRoom claims high rents and an ongoing cost-of-living crisis have rendered this 30 per cent benchmark unrealistic, with the majority of Londoners spending in excess of that.

The cheapest postcodes for graduates wishing to move to the capital are E12 (Manor Park) at £714, SE28 (Thamesmead) at £741 and E7 (Forest Gate) at £753, where young professionals can expect to spend 37, 38 and 39 per cent of their salary on rent respectively.

Matt Hutchinson, SpareRoom director comments: “Rocketing rents and an ongoing cost of living crisis means very little of London is affordable on an entry-level salary, and prospective graduates may now be priced out.

“With many businesses traditionally based in London relocating to other cities, and remote working becoming far more common, the capital is likely to dominate the graduate job market far less in years to come.”