Coventry is particularly affected.
The UK has long been a top destination for international students. But new visa restrictions and rising costs are changing that.
Home Office data shows a sharp decline in UK-sponsored study visas, dropping 31% from 600,024 in 2023 to 415,103 in 2024.
This decrease hits university cities hard, with many relying on international students’ spending.
Universities UK, representing 141 institutions, warns that policies to cut migration have “created significant uncertainty around the UK’s post-study work offer”.
The government insists international students “will always be welcome but the net migration levels seen in recent years have been completely unacceptable, and we have committed to reducing those numbers substantially.”
Coventry is particularly affected.
In 2022-23, Coventry University had England’s second-highest proportion of international students outside London.
Figures from the Higher Education Statistics Agency (HESA) show 16,285 non-UK students out of a total of 35,405.
Mohammed Abdullah Sayyed, who is from India, says:
“The one thing stopping more students coming here is recent changes in the visa.”
New visa restrictions, introduced in January 2024, prevent most postgraduates from bringing dependants and stop new students from switching to a work visa before completing their courses.
The impact has been significant. The number of study visas issued to dependants has plummeted 85%, from 143,276 in 2023 to just 21,978 in 2024.
Mohammed also highlights the cost gap between UK and international students.
At Coventry University, international tuition fees range from £16,800 to £20,050 per year, compared to £9,250 for UK students, rising to £9,535 in September 2024.
Brexit has made things worse. Coventry University says it has had “a profound impact” on attracting EU students.
The House of Commons Library reports that EU student numbers fell sharply after the UK changed visa rules and removed tuition fee loans for them in 2021.
Despite the drop in visas, international undergraduate applications through UCAS increased by 2.7% between 2024 and 2025.
But UCAS data does not capture students applying directly to universities or those enrolling in postgraduate courses.
The overall fall in international students is hitting university finances. Coventry University has already put hundreds of jobs at risk.
The impact extends beyond universities. Coventry University estimates that international students contribute £651 million annually to the city’s economy.
A sign of the downturn is the shift in property use. Some student accommodation blocks are being repurposed as residential housing. Estate agents report landlords selling properties due to falling demand.
Despite the challenges, Coventry University remains committed to accessibility.
It says: “It would be odd to constrain our mission and values within national borders.
“Our long-term strategy of diversifying income to help counter the fact UK tuition fees have been frozen for several years has been successful and remains the right thing to do.”
However, financial strain is forcing changes:
“The sustained growth in student numbers over a number of years allowed us to create many jobs and increased economic and social benefits.
“We are now having to rebalance the organisation based on changes outside of our control.”
Meanwhile, Pakistani national Hares Jamil is studying at Sheffield Hallam.
He said:
“We’ve seen riots against immigrants in the last year and international students have been caught up in that.
“It’s really uncertain times.”
The drop in international students has concerned business owners, calling it a “worrying trend”.
The government says its Immigration White Paper will provide “a comprehensive plan to restore order to our broken immigration system, linking immigration, skills and visa systems to grow our domestic workforce, end reliance on overseas labour and boost economic growth”.
Vivienne Stern, CEO of Universities UK, says declining international student numbers hurt not just universities, but entire communities.
“There are people in all sorts of walks of life who benefit from the fact that universities bring students in who spend money in shops and cafes – local businesses, getting their hair cut, taking taxis.
“It really contributes to economies right across the UK, and I think that’s really special.”
The question now is whether the UK can balance its immigration policies with the economic and educational benefits international students bring.
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