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@ev
£16k is absolutely fine, i've just moved out of a £500pcm flat into a room just off the top of brick lane and now pay £250pcm for a smallish room in a ok flat with some really great people. if you look hard you can find good deals on accomodation and if you cycle than living further out from the centre won't be a problem.
just after i left uni i was working part-time and earning about £700 per month (~£8500), it's not that hard.