The UK has traditionally been a popular destination for students from other countries. This may be changing, though, based on recent developments. Policy changes and a precipitous decline in student visas have sparked worries. This is affecting many university cities that depend on student spending.

A Sharp Decline in Student Visas

According to recent data, the number of UK student visas has significantly decreased. The United Kingdom granted 600,024 sponsored student visas in 2023, but that figure dropped by 31% to 415,103 in 2024.

This is mostly due to the government's efforts to reduce net migration. According to the Home Office, previous migration numbers were excessively high, and the goal of new policies is to eliminate them.

Stricter visa regulations went into effect in January 2024. Postgraduate students are no longer permitted to have dependents, and they cannot change to a work visa before completing their courses. Between 2023 and 2024, the number of dependent visas fell by 85%, from 143,276 to 21,978. Due to these changes, studying in the UK is now less appealing.

Coventry University is experiencing stress due to its large number of international students. In 2022–2023, it had more than 16,000 non-UK students. However, as fewer international students enrol, its finances are hurting. The local economy is suffering, and the university faces job layoffs.

Cost Barriers and Post-Study Struggles

Another obstacle is tuition costs. Compared to domestic students, international students pay significantly more. The majority of degrees at Coventry University cost between £16,800 and £20,050 annually. Students in the UK pay £9,250, which increases to £9,535 in September.

After graduation, many students also have trouble finding employment. For a graduate visa, Chinese construction project manager Jingwen Yuan paid £3,000. However, she has failed to secure employment. Her classmates, however, went back home and were given financial assistance by their government.

Brexit has also been a factor. EU students are no longer eligible for tuition loans and must pay international costs. According to Coventry University, this has reduced the UK's attraction to candidates from the EU.

Another factor, according to Spanish student Laura Alonso, is the elimination of Erasmus+. The Turing Scheme, which replaced it, provides funding for UK students studying overseas but not for students from the EU.

The Impact on Cities and Businesses

There will be less money coming into university cities if there are fewer overseas students. According to Coventry University, the local economy benefits from the £651 million that overseas students provide each year. Businesses are currently suffering the loss.

Regular residential buildings are being constructed in place of student housing blocks. Real estate is being sold by landlords. Real estate brokers say demand is waning. Local businesses that depend on student spending, such as shops and cafes, are having difficulties.

According to the UK government, its next Immigration White Paper will address migratory issues. It seeks to increase the number of workers in the country and lessen dependency on foreign labour. However, the decline of overseas students is already creating issues for local economies and universities.

FAQS

Why do tuition costs for overseas students exceed those for domestic students?

International student fees are a major source of funding for UK universities. International students pay far higher tuition to compensate for financial shortages, even though local tuition fees are capped.

What effect does the decline in foreign students have on housing for students?

Some purpose-built student housing is being turned into residential housing as fewer overseas students attend. The financial burden is being felt by property owners and landlords.