Tier 1 Investor Visas: latest figures

Tier 1 Investor Visas: latest figures

The number of Tier 1 Investor Visas for the United Kingdom has fallen significantly in 2015, following the introduction of stricter rules in late 2014. There can be little doubt that the UK Government’s decision to raise the requirement for investment funds from one million to two million pounds sterling is the single biggest factor in the drop in numbers.

In the first half of 2014, the numbers of Tier 1 Visas and pre-Points Based System (pre-PBS) equivalents issued was in line with recent years. In the first quarter, 572 of these visas were issued, up from 448 in the same period in 2013. The second quarter of 2014 saw 667, up from 454 in the April-June period in 2013.

The graph was relatively stable in 2013. Quarters three and four of that year saw figures of 561 Visas and 440 Visas, giving an annual total of 1,903, averaging out at 476 in each quarter; close to the actual figure in each three-month period.

However, the second half of 2014 and the first half of 2015 have seen a sharp peak, followed by a significant low. The third quarter of 2014 witnessed a slight drop on the previous quarter, to 607; but in the final quarter the figure leapt to 843 Visas granted. That compares with the lower figure of 827 for the first two quarters combined of 2015.

The new rules – notably the need to invest £2m instead of £1m – clearly had an effect. There was a rush to apply before the new rules came into force on 6 November 2014 (hence the increase in the final quarter of 2014); and fewer applications after the rules kicked in.

The figures solely for Tier 1 Investor Visas show the drop in numbers even more clearly. There were 471 applications for Tier 1 Visas in the fourth quarter of 2014; and this dropped by 72% to just 58 between January and March 2015. In the second quarter of 2015 the figure fell again, to 44: 82% lower than the number for the same quarter a year earlier.

There have been noticeable reductions at the Tier 1 level for both Chinese and Russian investors. Quarter 2 of 2014 saw 102 Visas granted to Chinese applicants and 72 to Russians; a year later, these figures were just six and 11 respectively.

Nevertheless, it would be wrong to say that it is only the new visa rules which account for these falls in numbers. The Home Office has also looked more carefully at the sources of funding of those applying, which no doubt has also had an effect. Another domestic factor in the UK would have been uncertainty caused by the General Election, which took place in May. It will be interesting to see whether the Conservative victory in the Election leads to an increase once again in applications.

External factors have also clearly affected the figures. The Ukraine crisis, which has led to sanctions being applied on Russia and – with the fall in the oil price – has helped contribute to the downturn in the Russian economy must also be a factor in the reduction in the number of Russians applying. And problems with the Chinese economy likewise have influenced the number of Chinese applicants.

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