A growing number of British university graduates are returning to their childhood homes citing insurmountable housing costs, a trend that threatens to reshape the demographic and economic fabric of the nation. Official data from the Office for National Statistics indicates that the proportion of 22- to 30-year-olds living with parents has risen to 28%, up from 22% a decade ago. This shift, driven by soaring rents and deposit requirements, represents a structural failure in the housing market that has become a central political issue.
The phenomenon is most pronounced in London, where the average rent for a one-bedroom flat now exceeds £1,800 per month. Graduates earning entry-level salaries of £25,000 to £30,000 face a rental burden of over 50% of net income, a level the Office for Budget Responsibility defines as unsustainable. Many find that even after securing employment, they cannot afford a deposit for a mortgage, which requires an average of £63,000 in the capital according to data from the Resolution Foundation.
The situation has created a generation of so-called “boomerang children,” a term economists use for young adults who leave but later return. Charlotte Evans, a 24-year-old graduate of the University of Manchester, described her experience: "I moved to London for work after finishing my degree. After two years of paying £1,400 a month for a room in a flat share, I had saved less than £3,000. I moved back to my parents’ house in Birmingham last month. It was the only way to start saving."
This trend carries significant economic implications. The Bank of England has warned that prolonged cohabitation with parents can delay household formation, reducing demand for new housing and dampening consumer spending on durable goods. Furthermore, the inability to own property may reduce long-term wealth accumulation, widening the intergenerational wealth gap. The Institute for Fiscal Studies estimates that homeownership among 25- to 34-year-olds fell to 41% in 2023, down from 55% in 1990.
Government responses have been piecemeal. The Help to Buy scheme, which closed to new applicants in March 2023, was credited with assisting 380,000 households but did not address the underlying supply shortage. The current government has prioritised planning reform to accelerate housebuilding, aiming for 300,000 new homes per year. However, progress has been slow. Only 210,000 homes were completed in the last financial year, falling short of the target.
Critics argue that the crisis is exacerbated by broader economic policies. The London School of Economics’ Centre for Economic Performance notes that real wages for young workers have stagnated, growing at an annual average of 0.5% since 2008, while rents have risen by 2.4% per year. This divergence, they argue, cannot be solved by housing policy alone and requires a comprehensive review of wage growth and regional economic development.
The cultural impact is also profound. A generation that expects to live longer with parents may defer marriage and childbearing, contributing to the country’s declining fertility rate, which stands at 1.56 children per woman. Sociologists at the University of Cambridge have described this as a “coming of age delayed,” with young adults lacking the autonomy typically associated with adulthood in previous decades.
As the general election approaches, housing has become a defining issue. Both major parties have pledged to increase supply, but without a credible plan to address affordability, experts predict the situation will worsen. The National Housing Federation projects that 8 million people will be living in unsatisfactory conditions by 2025 unless radical action is taken.
For now, thousands of graduates are adapting to a life of suspended independence. They have become a statistical marker of a market in crisis, a generation that learned that a university degree does not guarantee a place of one’s own.
