The recently released Census data reveals the extent of the immigrant population in London and that those who classifying themselves as being ‘White Britons’ are now a minority of residents in the capital, making up just 45% of the population.

However whilst the Government needs to address the issue of immigration, “they must avoid implementing blanket policies which catch genuine ‘contributors’ to the economy and society in general,” - according to Naomi Heaton of London Central Portfolio Ltd (LCP).

The London based property firm who focus on mid to high end rental flats, mainly for corporate lets, believe that in an attempt to reduce immigration numbers, the Government are seeking to drastically reduce the number of overseas students coming to the UK, which could have inevitable, negative knock-on effects for economic growth.

In the City of Westminster alone, there are now 75-100,000 students, representing one quarter of all the international students who come to the UK each year and these students have now become a significant driver in the wider London rental market.

The LCP study shows that the average foreign student pays rent of £28,878 per annum in CoW. Add to this the tuition fees paid by each overseas student (for example, studying medicine at Imperial College would currently cost £200,000 over six years) and the leisure and retail trade they support, it is clear that a reduction in the number of students will have a significant impact.

By the 2015 election, the Government intends to reduce the annual net migration from 240,000 a year to fewer than 100,000. Students, who are now being classed as permanent migrants, will fall into their definition of immigration meaning that a reduction in the student population helps the Government meet its target. With the US, Canada and Australia classing students as ‘non-immigrant’ admissions and the rest of the world hot on the UK’s heels in terms of higher education institutions, LCP say that these changes to immigration policy will drive international students away to other countries.

Naomi Heaton, CEO of LCP comments, “Foreigners are attracted to London as a financial centre, a ‘go to’ destination and as a premier league provider of education. Alongside the aspiration for a great British education, there has been a significant appetite to invest in ‘bricks and mortar’. Recent changes to the immigration rules could send these students, and with them significant international wealth and investment, elsewhere. Hopefully David Cameron’s new stance on Chinese visas will trigger a more commercial approach to the rules on immigration so that international students will continue to make London their first choice to the benefit of the UK economy.”