The great British university experiment is producing an unexpected outcome. A record number of graduates are moving back in with their parents. The latest data from the Higher Education Statistics Agency shows that 42% of last year's cohort are living at home six months after graduation. That is up from 35% in 2019. The figure is even higher for graduates from low-income backgrounds: 58%.
This is a political time bomb. The government's mantra is 'levelling up' and 'opportunity'. But what opportunity is there in a degree that costs £50,000 and lands you back in your childhood bedroom? The Treasury will be watching the polling numbers. Young voters are not impressed. They are the ones who turned out in force for Labour in 2017. They are the ones who are now being priced out of the housing market.
The causes are clear. Rents have risen by 20% in major cities since 2021. Graduate salaries have stagnated. The 'graduate premium' the government loves to cite is evaporating. A first job in London now pays barely enough to cover rent. So they go home.
This is not just an economic story. It is a cultural one. The university experience is supposed to be about independence. It is the first taste of adulthood. Now it is an extended adolescence. The 'boomerang generation' is becoming a permanent fixture. The real question is whether this generation will ever leave home.
The political implications are profound. The Conservative Party has long relied on the aspirational middle class. Home ownership is a key part of that dream. If graduates cannot afford to rent, let alone buy, that dream is dead. Labour has already seized on this. Keir Starmer's speech last week about 'broken promises to young people' was aimed directly at this cohort.
But there is a deeper problem for the Tories. The graduate return rate is highest in the north of England. In the North East, it is 51%. In the North West, 47%. These are the 'red wall' seats the Tories won in 2019. They are now at risk. The government's 'levelling up' agenda was supposed to bring opportunity to these regions. Instead, it is bringing graduates back to their parents' homes.
What can be done? Not much in the short term. The housing market is broken. Rents are driven by supply and demand. The government has promised to build more homes. But that is a long-term solution. In the meantime, the graduate return rate will continue to climb.
The real story here is about the value of a degree. For decades, politicians have told young people that going to university is the path to success. That is no longer true. A degree is no longer a ticket to a good job. It is an expensive piece of paper that leaves you in debt. The government knows this. That is why they are pushing apprenticeships. But it is too little, too late.
The narrative is shifting. The 'boomerang generation' is not a lifestyle choice. It is a symptom of a broken system. The question is which party will capture that anger. The early signs are that Labour is winning. But the Tories still have time. They need to act fast. Otherwise, the next election will be decided by the parents of graduates. And they are not happy.
