LONDON: Net migration to Britain has fallen by a quarter over the past year, from 242,000 to 183,000, the Office for National Statistics (ONS) has reported.

The decrease is the first fall in the figures since the government set its target to reduce annual net migration to below 100,000 by the next general election.

Official statisticians say the fall of nearly 60,000 in the year to March 2012 has been driven by a reduction in the number of overseas students coming to study in Britain and a rise in the number of people leaving Britain with a definite job offer abroad.

The fall in immigration accounts for two-thirds of the drop. It is the largest fall in net migration for four years. Visa applications show the first signs that the official squeeze on family migration has begun to bite.

The quarterly migration figures also show for the first time that China is now the second most common country of origin for migrants coming to Britain from outside Europe.

Home Office (interior ministry) ministers welcomed the fall saying it was a “significant step towards bringing net migration down to the tens of thousands” but at least one migration expert said that the government will still struggle to meet its target by 2015.

The ONS quarterly figures show a rise in the number of people leaving Britain to live or work abroad, from 336,000 to 353,000 over the 12 months to March. The figures also show a fall in immigration, from 578,000 to 536,000, the lowest level since June 2004.  Statisticians say this fall has been driven by a drop in the number of migrants arriving from outside Europe and the number of Britons returning to live in the UK. The flow of European migrants has remained stable over the past year.

The quarterly figures show a 20,000 fall in overseas students, with 213,000 arriving to study in the year to March. There was a fall in the number of Indian, Sri Lankan and Bangladeshi students, but rises of 7 per cent in students from China and 6 per cent in those from Pakistan.

The continuing squeeze on overseas student numbers as a result of the government's policy is reflected in separate Home Office student visa data showing an even larger (29 per cent or 70,000) fall in visas issued for study in the year to this September.

This however has been offset by a 12 per cent, or 8,000, rise in Home Office student visitor visas over the same period. Student visitor visas are valid for less than a year and so are not included in the official net migration figures. Many of these students will be on short courses at English language schools before going onto British universities.

The Home Office said family visa data showed there had been a 15 per cent fall in the number of family-related visas, to 42,213. It expects student numbers to continue falling. Home Office officials said the fall in student numbers was mostly in further education and English language colleges, with overseas university numbers up by 1 per cent.

China now ranks second among the top five most common countries of origin of migrants to Britain. A total of 44,000 Chinese nationals came to live in Britain in the year, 40,000 of whom came to the UK to study. India remains the top country of last residence. India is now the second most popular destination for those emigrating from Britain. The majority of those leaving Britain for India were born there and were returning home. They accounted for 21,000 of the 23,000 who went to live and work in India last year, according to International Passenger Survey data.

The immigration minister, Mark Harper, said the figures showed the government was bringing immigration under control. “This is a significant fall in net migration and the total number of visas issued is at its lowest since 2005. Our tough policies are taking effect and this marks a significant step towards bringing net migration down from the hundreds of thousands to the tens of thousands by the end of this parliament,” said Harper.

“At the same time, we continue to attract the brightest and best: these figures show that there has been a small increase in the number of sponsored student visa applications for the university sector — and a further increase in student visit visas. It's clear that international students continue to come to the UK's world renowned universities.”

But Sarah Mulley of the Institute of Public Policy Research said the figures showed that the government would still struggle to meet its target: “Steps to reduce abuse of the student visa system are welcome, but if the government's net migration target is to be met, they also need there to be a dramatic fall in the numbers of genuine foreign students. This will come at a significant economic cost,” said Mulley.

“The irony is that the impacts on net migration will only be short lived because most students stay only for a short time. Reduced immigration today means reduced emigration in a year or two's time, which could see net migration rise again.”ONS statisticians said they would have the data in a year's time to be able to separate the numbers of overseas students from the headline net migration figure. The ONS has data on the numbers of overseas students coming to Britain but does not yet have robust figures on those leaving.

By arrangement with the Guardian