The government has published its monthly visa data which shows that Sponsored study visa applications were up 7% for the year ending September 2025, compared to September 2024.

However, applications remain 13% lower than the year ending September 2023.

Louise Tweedie, Partner and Higher Education Specialist at RSM UK, comments: “Despite the increase in visa applications for the second consecutive month suggesting a rebound in international student demand, the sector continues to face key structural and financial challenges. Many universities are still grappling with the financial fallout from last year’s policy changes, including restrictions on dependants. Rising domestic enrolments from this summer’s record intake will therefore not offset the shortfall in international fee income, casting doubt over the long-term financial sustainability of some institutions. As such, many institutions are reassessing their international recruitment strategies.

“While the increase in domestic acceptances is welcome, the UK is approaching the demographic peak, and it comes amid growing concerns over affordability, with students compromising on their university experience. The reintroduction of maintenance grants and proposed reforms to tuition fees are positive steps, but they will take time to be implemented, and universities would be charged a levy on international student fees to cover maintenance grants, adding further to institutional deficits. In the short term, organisations are offering financial incentives such as hardship funds, subsidised accommodation and free tech packages as part of their outreach strategies.

“As the party conference season gets underway, we have already heard the Prime Minister scrap the historic Labour ambition to “get 50% of kids to uni” and has set a new target for two thirds of young people to undertake university, further education or a “gold standard apprenticeship”. Although this is a risk for universities, it’s also an opportunity to deploy their flexibility and agility; enhancing collaboration with local communities and providing pathways for progression.”

She added: “We’re also seeing a widening gap in sector resilience. Some Russell Group institutions are better positioned to absorb shocks and have greater flexibility to adapt their grade requirements, whereas post-1992 universities face mounting pressure. Some are already scaling back specialist programmes, merging departments, or pausing capital projects to stay afloat. Looking ahead, we could see more sector consolidation to improve financial viability, following the merger of the universities of Kent and Greenwich next year. The sector is eagerly awaiting the forthcoming Autumn Budget to understand how the government’s new target for young people pursuing university, further education or skills training will impact the education landscape.”

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