The Prime Minister Proposes Stricter Immigration Rules with English Tests and Delayed Settlement
- TBA
- 2 days ago
- 4 min read
Updated: 1 day ago
The Prime Minister proposes stricter immigration rules with English Tests and Delayed Settlement
On Monday, May 12, UK Prime Minister Sir Keir Starmer announced a comprehensive overhaul of the country’s immigration system. In a newly released immigration white paper, the government detailed plans to tighten immigration rules and significantly reduce net migration to the UK.
Under the new white paper, stricter controls will be implemented across all areas of the immigration system, including:
Raising the skill requirement to degree level
Increasing English language proficiency standards
Extending the qualifying period for permanent settlement from 5 years to 10 years
According to The Times, the new plan aims to establish “a controlled, highly selective, and fair system.”
One major change includes raising the English language requirement for work visa applicants to the equivalent of A-Level (B2) proficiency. This level means being able to “express oneself fluently and spontaneously without much obvious searching for expressions,” and to “use the language flexibly and effectively.” Currently, only a GCSE-level proficiency is required.
Additionally, the period required to apply for permanent residency on a work visa may be extended from 5 years to 10 years. However, this will depend on factors such as the applicant’s time spent outside the UK and the stability of their financial situation.
UK media have also reported that visa applications from nationals deemed more likely to overstay or seek asylum in the UK may face additional restrictions. Work and study visas from countries such as Pakistan, Nigeria, and Sri Lanka are reportedly most likely to be affected.
According to Home Office data, the UK received 108,138 asylum applications in 2024—marking the highest 12-month total since records began in 2001. Net migration for the same year was approximately 728,000.
Prime Minister Starmer stated: “Some people think controlling immigration is about restricting a natural freedom, rather than a basic and reasonable responsibility of government to make choices in the interest of the national economy. For years, this attitude has clouded our judgment. Let me be clear: those days are over. We will build a system that is controlled, selective, and fair.”
When asked whether this meant net migration numbers would fall, he responded that “net migration will fall significantly by the end of this Parliament,” though he did not provide a specific target.
UK and US announce trade deal
According to the latest data from Nationwide, since the stamp duty adjustment in April, UK house prices have fallen 0.6% month-on-month, and the annual growth rate of house prices has also slowed. However, home prices are still 3.4% higher compared to the same period last year, with the current average price at £270,752.
Nationwide’s Chief Economist, Robert Gardner, stated that transaction volumes surged in March as buyers rushed to avoid higher stamp duty costs, and “the market may remain slightly subdued in the coming months.” However, with the possibility of further interest rate cuts, homebuying activity may rebound over the summer.
Starting April 1, 2025, the stamp duty exemption threshold for ordinary residential transactions will be lowered, cutting the tax-free threshold for residential property purchases from £250,000 to £125,000, meaning more property transactions will be subject to taxation.
In addition, the benefits for first-time buyers will also be adjusted:
The tax-free threshold will drop from £425,000 to £300,000;
The maximum property price eligible for the 5% stamp duty rate will decrease from £625,000 to £500,000;
If the property price exceeds £500,000, buyers will no longer qualify for any first-time buyer benefits and will have to pay the standard stamp duty rates.
The new policy means homebuyers will face higher tax burdens, particularly first-time buyers and those purchasing mid-priced homes.
Ashley Webb, an economist at Capital Economics, noted that April’s house price drop was the largest monthly decline since August 2023. Lowering mortgage rates will help boost housing demand in the coming months and offset the spending squeeze caused by U.S. President Trump’s trade tariffs, which may lead to rising housing costs.
The firm forecasts that UK house prices will rise 3.5% in 2025 and 4.5% in 2026.
Interest rate cut to 4.25% by Bank of England
As the UK and US reached a trade agreement, the Bank of England’s Monetary Policy Committee (MPC) voted to lower the benchmark interest rate from 4.5% to 4.25%. The vote revealed a three-way split among the nine members: five supported the cut to 4.25%, two voted for a deeper cut to 4%, and the remaining two opposed any cut, favoring keeping the rate at 4.5%.
Announcing the rate cut, Bank of England Governor Andrew Bailey stated, “The past few weeks have shown just how unpredictable the global economy can be. Our top priority is to reduce inflation gradually and steadily.”
Analysts note that while higher tariffs may dampen global and UK economic growth and contribute modestly to lowering inflation, the effects are expected to be limited. Growth is projected to decline by just 0.3%, and inflation by 0.2%. The Bank of England has not forecast a recession as a result of ongoing trade tensions.
The central bank raised its 2025 UK economic growth forecast from 0.75% to 1%, attributing the revision mainly to stronger-than-expected growth in the first quarter. However, it noted that underlying growth remains weak, with the economy expanding by just 0.1% per quarter.
Meanwhile, UK house prices rose in April for the first time this year, supported by easing mortgage costs and steady demand. According to data from lender Halifax, house prices increased by 0.3% last month, reversing a 0.5% drop in March. It marked the first monthly increase since January. The average UK property value now stands at £297,781, up from £296,899 the previous month.
