International students benefit the UK, but the speed of the increase in their numbers since 2019 has diluted these benefits and created pressures on student housing. This briefing lays out how to manage their numbers to reduce these pressures without creating a financial stability risk for the higher education sector.
KEY POINTS
- International student numbers grew 37% following the student visa reforms of 2019, from 496,110 in 2018/19 to 679,970 in 2021/22.
- Post-2019 international student flows have had different characteristics:
- Growth has been driven by students from India, Nigeria and Pakistan, while Chinese and EU student numbers have stagnated and fallen.
- The majority of the growth has been in students studying one-year master’s degrees.
- New international students are much more likely to bring dependants.
- Although international students bring economic and soft power benefits, the overexpansion of international student numbers has diluted these benefits while creating pressures on the student housing market.
- And while international student fees are a vital source of income for universities, universities have become overreliant on this fundamentally insecure income stream, creating a financial sustainability risk.
- To control international student numbers without creating a financial crisis in higher education, the government needs to accompany visa reform with financial support for universities.
RECOMMENDATIONS
- Limit the increase of international student numbers to ensure sustainable growth.
- Compensate universities for lost income from international students with an increased teaching grant.
- Update the International Education Strategy with new targets for diversification of international student flows.
- Reform visa charges and salary thresholds to maintain the UK’s attractiveness to international students.
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