Hi Farzu
Have you asked the job centre for advice on writing your CV when you are applying for work? Also, what type field is your degree in and what types of job are you applying for ? When they ask for a photo they only expect a headshot like your passport photo so I doubt this is the reason for your lack of success so far, it may just be something simple like the way you are wording your CV or matching the job specification with your work experience.
The job centre will be able to help you with this.
Unfortunately the amount of rent you are being asked for by your relative is quite cheap for the city, so it may be hard for you to find anywhere that is any cheaper. Try to negotiate calmly with your relative regarding the rent.
To privately rent a one bedroom flat privately is a minimum of about 200 pound a week if you are lucky with council tax and bills on top. Social housing is roughly half the cost but in very short supply as I am sure you are aware.
Please don't take this the wrong way Farzu, but your on an emotional rollercoaster at the moment and you are probably having mood swings all over the place, if you are having suicidal thought maybe you need to go back and see your gp and tell them this.
Take care