This could be disastrous for the UK economy in the long term as students choose institutions which may not bring out their potential and courses which cost them less, meaning they are not acquiring the skills needed in the UK which they may have otherwise chosen.
Furthermore, the experience of living away from home is very valuable for students. They learn how to manage finances, pay rent, bills and so on, cook, wash their clothes and clean (at least a little!) for themselves. I have found University to be an excellent way of learning how to live on my own and support myself, but still having my parents to fall back on if I really need their support. It is like a buffer zone between being reliant on your parents and becoming fully self reliant. If more students are choosing not to move away from home they are depriving themselves of this excellent life experience.
These concerns are being further compounded by the fears of rising tuition fees which would further add to student debt, with graduate recruitment prospects not looking good. The survey also found that 95% of young people were opposed to the lifting of the £3000 per year cap.
Choosing whether or not to attend University is a big enough decision on its own, without having all these extra elements for 16 year olds to have to take into consideration!