A decline in visa applications from international students is raising concerns about the financial health of some universities in London and across the UK, economists are warning.
The Institute for Fiscal Studies (IFS) pointed to Home Office data showing a 17.1% drop (25,200 fewer) in student visa applications in August compared to the same month last year. This continues a broader downward trend, with a 16.6% decrease (55,500 fewer) in total applications so far this year compared to the same period in 2023.
Kate Ogden, a senior research economist at the IFS, noted, “The recent figures showing a one-sixth decline in student visa applications suggest that UK universities may no longer be able to depend on rising numbers of international students to offset real-terms cuts in funding for domestic undergraduate teaching.”
READ ALSO: Vinales will be as tough for Rossi as Lorenzo – Suzuki MotoGP boss
While much of the higher education sector remains financially stable, Ogden cautioned that some less-selective institutions, which rely heavily on international student fees and face growing competition for domestic students from more-selective universities, could face significant challenges in the coming academic year.
Since January, most overseas students have been restricted from bringing dependents as part of government efforts to curb immigration. Exceptions to this rule apply to international students enrolled in full-time postgraduate research degrees or those on government-sponsored courses.
Home Office data reveals that between January and August 2024, there were 15,500 applications from dependents of students—a decrease of 83% compared to the same period last year. Meanwhile, applications from main applicants totaled 278,700 during this period, representing a 17% drop year-on-year.
The Home Office emphasized that the number of sponsored applications for studying in the UK typically peaks between July and September, ahead of the academic year. They noted that it will be important to analyze the results of this peak in the autumn to fully understand any changes this year.
Credit: BusinessDay Ng
