Graduates have long believed that strong salaries are tied to moving to London, but new analysis suggests competitive earnings and better living standards are increasingly found in regional cities.

Higherin, an early careers platform, reviewed salaries, degree pathways and regional living costs across the UK. Its findings align with the Institute of Student Employers’ 2025 Student Recruitment Survey, which recorded a 14.6% fall in graduate intake among leading employers in 2024 and reported a rise in regional hiring to secure talent. Luminate’s 2025 salary data also shows that regional purchasing power often exceeds that of London because of lower living costs.

High costs weaken London’s appeal

The average graduate salary in London stands at £28,634, yet housing and daily expenses reduce its impact. Luminate reports that housing affordability in the capital has reached twelve times the average graduate income, compared with under five in the North East. The Office for National Statistics’ 2025 Housing Affordability Bulletin places England’s house price to earnings ratio at 8.8, while London exceeds 12. The State of London Report 2025 shows average private rents at £2,163 a month, which is 63% above the UK average.

Oliver Sidwell, careers expert and Co Founder of Higherin, warns that graduates often misjudge their earning power in the capital. “There is a romance to London, and for some careers it will always make sense. But graduates often overlook what their wage can realistically cover. A salary in London may sound higher, yet once rent, commuting and everyday costs are paid, many find they are no better off than friends who stayed closer to home.”

Save the Student’s 2025 salary guide places the UK average starting salary at £42,000 but notes that London’s higher costs reduce its advantage for many roles.

Regional cities gain momentum

Several cities are building strong graduate pathways. Dundee is seeing growth in life sciences and technology, with starting salaries near £28,000. Glassdoor’s 2025 data lists average researcher salaries at £35,168, with STEM entry points between £26,000 and £30,000 and University of Dundee graduates reporting median earnings of £21,500 fifteen months on.

Aberdeen continues to benefit from the energy sector and the expanding green economy. TMM Recruitment’s 2025 Salary Guide shows graduate engineers in energy transition roles starting between £25,000 and £32,000. Projects such as the Aberdeenshire Hydrogen initiative are opening new opportunities in sustainable technology.

Belfast has become a growing hub for finance and technology. Glassdoor’s 2025 figures place finance graduate salaries between £27,000 and £35,000, while tech roles in fintech and software development align with UK averages of £30,000 to £32,000.

Sidwell notes, “Employers are shifting their thinking. Many could be realising that not every graduate wants to move to London. By investing in cheaper regional offices and paying competitive starting salaries, they are not only broadening access but also retaining talent in places that were previously overlooked.” High Fliers Research’s 2025 Graduate Market report supports the move toward regional recruitment.

Subject choices still shape earnings

Department for Education data shows that a decade after graduation, economics graduates earn an average of £68,600. Medicine and dentistry follow at £61,000, and mathematics at £51,500, trends reflected in Graduate Outcomes (LEO) data.

Sidwell highlights the impact of structured schemes. “Retail graduate schemes often surprise people. The Aldi area manager programme, which recruits nationally, begins at £50,000 and provides structured progression.” Aldi’s 2025 recruitment page confirms that earnings can rise to £95,655 by year eight.

He adds that these roles are open to a wide range of degree backgrounds. “These opportunities are open to graduates from a range of disciplines. They may not appear on the radar of someone studying history or English, but they can provide financial stability and genuine leadership experience for those who might be interested.”

Technology offers similar advantages. Graduate software roles start near £31,500. PayScale’s 2025 data lists the average national salary at £30,148, Glassdoor reports £36,580 nationally, and high demand areas reach £40,569.

Graduate schemes offer alternative routes

Sidwell argues that structured programmes remain one of the strongest early career options. He explains that rotating through departments can help graduates progress faster than in roles that appear more prestigious.

“Within three years, they may be earning more than someone who chose a more prestigious title but a slower route, and it can also open the door to a sideways move into another company at a higher level than they would likely have reached otherwise.”

He reminds graduates to consider alignment as well as earnings. “A higher salary only matters if the role feels right for you and your plans.”