Brexit's Impact on Students and UK Universities: A Comprehensive Analysis

Brexit was a big step taken by Britain to withdraw itself from membership in the European Union (EU). It was one of the most talked-about decisions of the British Parliament. The Brexit impact had a substantial effect on the economic relations of the UK, altering its trading relations with the European Union. Additionally, international students coming to the UK were also adversely affected after the UK’s separation from the EU, which resulted in considerably higher tuition fees, significant changes for international students in the new visa and immigration system, and a decline in the student enrollment rate for EU students post-Brexit. The 40-year-long relationship between the European Union and the UK ended in January 2020, following the June 2016 referendum, with 52% of votes leaning towards the leaving side. An additional transition period of 11 months was provided so that the shift could be smooth. In 2018, the country’s GDP growth decreased to approximately 1.4% from 1.9% in 2017 and 2016, primarily due to a decline in business investment. As per the IMF's projections, the economy was anticipated to expand at 1.3% in 2019 and 1.4% in 2020. Additionally, the Bank of England lowered its growth estimate for 2019 to 1.2%, the lowest it has been since the financial crisis.

1. Impact of Brexit on Students

As the EU is one of the most sought-after educational destinations, after the USA, the community of international students was hugely affected by the UK’s exit from the Union. As a result of Brexit, European Union students will now be classified as international students and will be subject to the same tuition fees as students from other nations. According to a study commissioned by the British government, the Brexit impact could result in 57% fewer EU students enrolling in UK higher education institutions. It comes as a shock as the number of students was continuously rising till 2018. This trend was also seen during the pandemic as the numbers continued to grow and reached 600,000 which makes for 22% of the higher education students.

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EU student fees in UK after Brexit

Before Brexit, the students from the countries of the union had to pay the same fees as the British students, but post-Brexit, that has changed. The EU students have to pay the same fees as the students coming in from countries outside the Union. EU student fees in UK after Brexit increased substantially, which made it challenging for them to pursue higher education in the UK. As a result, the number of EU students applying to UK universities saw a steady decline. In 2021/22, the number of EU students starting undergraduate courses at UK universities was down by 50% as compared to the previous year, as per the UCAS End of Cycle Report 2022. This has had a huge impact on the students coming in from Europe. The increase in the fee is due to the UK's departure from the EU, due to which it has lost access to certain funding programs. However, there have been alternate funding programs like the Turing Scheme, which allows UK students to study abroad and vice versa.

Impact of Brexit on student visas

Britain’s exit also means that EU students won’t be able to enter the UK under the EU Settlement Scheme. They will need to have proof of English language, obtain student visas like non-EU students, and showcase sufficient funds to cover the expense of living in the UK.

Brexit impact on immigration policies

The exit impacted various policies including the immigration policies. The new system gives preference to highly skilled workers and students who can contribute to the UK economy and establishes a minimum salary requirement for work visas.

Because of the high cost of sponsoring work visas, employers may be hesitant to sponsor work visas for international students after graduation.

The influence on student enrolment is not limited to the points stated above but extends beyond that. The diversity and quality of education have seen a gradual effect in the UK. EU students make significant contributions to the UK economy, culture, and research. Furthermore, Brexit impacted the UK's global competitiveness, as fewer international students may reduce the country's international influence. Despite the impact of Brexit on EU student visas, the UK remains a favourite destination among foreign students.

2. Impact of Brexit on Student Accommodation Sector

When Brexit took place, there was a fear that international investors might withdraw from the UK student accommodation market. But surprisingly the UK is still a lucrative destination for the investors in student accommodation sector. It comes as a boon for the student accommodation market, let’s analyze how it happened.

UK visa simplification boosts international student numbers

Post 2021, the Brexit impact led to a sharp incline in the number of students coming to study in UK universities. The process of applying for a visa was one of the potential contributing reasons, according to a Carnegie Empowerment for Peace (CEP) report, since other nations provided better and simpler routes. However, more applicants now prefer the UK due to recent changes that have made the process a lot simpler and other tempting perks like the post-graduate study visa.

UK study visa numbers surge due to Brexit impact

In the period from 2021 to March 2022, a remarkable number of 432,279 sponsored study visas were issued, encompassing both applicants and their dependents. This figure represents an astounding 89% increase compared to the previous year. One of the contributing factors to this surge can be attributed to the post-Brexit regulations implemented in January 2021, which now require applicants from the EU/EEA and Switzerland (excluding Irish citizens) to obtain visas when studying in the UK.

UK study visas stay attractive to non-EU students

Interestingly, despite this change, only a small portion of the overall student visas, totaling 23,395 (5%), were granted to applicants from the aforementioned group. This indicates a strong attraction towards studying in the UK from other regions, primarily Asia, Africa, and the Americas.

UK student visa numbers surpass pre-pandemic levels

The global pandemic, which significantly disrupted international travel in 2020, also influenced the year-on-year changes in student visa issuance. However, despite these challenges, the currently available data surpasses the pre-pandemic approval numbers, suggesting a continued surge in the future. Notably, in Nigeria, the number of UK student visas granted reached an astonishing 65,929 as of June, reflecting a staggering 222.8% increase from the 20,427 visas issued during the same period in 2021.

UK universities look overseas to offset Brexit losses

Post Brexit various other universities in other countries such as Germany and Italy have earned their place in student preferences and they have been seeing a sudden boom in the number of students. Whereas universities in the UK are turning their heads to other parts of the world to make up for the loss from the decrease in the number of students coming in from European countries.

3. Applications dropped 40% from EU students due to the Brexit impact

The transition period ended in December 2020, after Britain exited in January 2020. And, according to data released by the UCAS, there was a 40% drop in the applications received by the Universities through the UCAS in the case of EU students. The major factor behind it is that these students can no longer avail of the home-fee status or access tuition fee loans but have to pay the entire fee as international students.

Brexit uncertainty deters EU students from staying in the UK post-graduation. This change is usually seen in the students coming in from countries with weaker economies, where the ability to stay back in the UK is an extremely important factor. As an extended repercussion of the Brexit impact, students from other EU countries can no longer claim the home fee status, access to the UK’s financial system, and the automatic right to work there, which creates uncertainty in post-graduate opportunities.

It has also been noticed that the applications from E.U. students, at the most selective universities and the most selective courses fell by almost 16%. International students are a huge source of income for universities, and it has already been hit hard by the pandemic. And, with Brexit and the loss from tuition fees, accommodation, conferences, and events, the universities are going through a tough time.

EU students flock to EU universities with lower tuition fees

According to reports, German Universities have seen a sudden surge in the number of applications received. This has also been noted in the universities in Spain and France. This increase in the number of European students preferring European nations other than UK is due to the ease of immigration and fairly lower fees.

4. Conclusion

Brexit had a lot of consequences, and one of the biggest blows was taken by the higher education industry, including the student accommodation market and the admissions in the university. The universities are facing huge losses due to a reduction in the number of students coming from EU nations. Owing to this, universities are now turning toward other countries to make up for the loss.

The majority of pupils prefer to study in Irish universities, and it is gradually becoming a common favorite among them. It happens because they hold the same credibility with lesser fees.

The student accommodation market was not affected by it to that extent as the decrease in the valuation of sterling also makes life in the UK cheaper, which in turn increases the demand of private PBSAs.

To maintain the occupancy levels throughout the academic enrolment seasons despite the impact of Brexit, property management groups can list their properties on amber and cater to a larger student tenant cohorts.