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If you want to avoid tourists, probably any place outside the Medina (and especially anywhere near Jemaa ElFnaa) would be fine.  I will leave it to others to address safety of various neighborhoods and cost of rents, as I have no idea about that.

Compared to the cost of utilities in the US, where I'm from, the cost in Marrakech is low.  I pay for water and electricity (maybe 25-50 Dh per month each, although it's just me and I'm often not even there) and internet, which is DSL and costs $200 Dh. per month.  Cooking heat and hot water is by propane, which costs 40 Dh per tank and should last a single person  at least one month.  Groceries are a bit cheaper than in the US if bought in a supermarket, and much cheaper if bought in a local market and get charged the local price.  It's hard for me to see how one person could consume more than 100 Dh. per day in food, unless by eating out frequently at expensive high-end restaurants.  The price of alcohol is, however, about the same as in the US.  The cost of clothing and furnishings depends on whether you buy from the European department stores, which is expensive, or go to stores that cater to Moroccans, in which case you will find things cost  less than what you are used to in the UK.

Hi, tttttthhhaaaank u for ur reply, I have been researching Marrakesh for a while but it's hard to meet normal local people to hang out with, in all honesty I have never had trouble in Marrakesh but felt not so safe in other Moroccan cities. It's also hard to get an honest answer from people because u don't know if they have added their 25% comission, lol. Also I am thinking of teaching English to make a little money and mainly to meet people or does every English speaker try the same in morocco?

Generally when buying things from vendors where the prices aren't fixed you can haggle them down to about 50% of the asking price.  It certainly helps to learn a handful of Moroccan words to prove that you didn't just get off the plane.  Take advantage of the fact as well that there are often many vendors of the same product within a reasonable proximity.  So if you're not sure, go one store over and ask his asking price.  Usually when the prior vendor sees you walking away, he will again lower the price.  In terms of teaching English in Morocco, well if you are a native speaker and can put 2 words together, you shouldn't have a difficult time finding a teaching job.  In terms of groceries, if you want to eat American products, you will pay nearly American prices.  If you eat like a Moroccan, you can get by on 2 dollars a day if you like.  In terms of monthly rent, you can pay between 200 dollars a month for something humble, 400 dollars a month for something pretty decent, or 1000 a month for something quite nice in a good area.  It is quite common by the way to haggle as well for the rent on apartments.  I would suggest however finding an intermediary of Moroccan decent.  They could save you a lot of money. 

Good Luck.

Hi
If you still looking for housing in Marrakesh, I would recommend the Badii Neighbourhood,  where  I live ,it's near faculties of Letters and Economy. From my own experience, I would strongly recommend it.it's far from the centre medina, and there are nice, furnished, and  equipped apartments .The price is a lot more cheaper than in places like Guiliz .The price goes between 2000 to 2500 Dh.
If you should need any further information, don't hesitate to ask me. 
Best,
Ikram