The number of Non-EU postgraduate applicants has fallen for the first time in 16 years. In previous years the numbers had risen annually by an average of more than 10%. Figures released by the Higher Education Statistical Agency (Hesa) shows a 1% drop fuelling ideas that the government’s immigration crackdown is deterring students continuing their education in the UK.

The drop, from 174,225 to 173,560, was the first fall since such Hesa data began in 1995. The total number of university applicants for 2012 has decreased by 7.4% compared to the previous year along with a decrease in the number of EU applicants by 11.2%.

Jo Beall, British Council Director of Education and Society, said “the sector was expecting a decline in growth, but the actual reduction in postgraduate numbers is of real concern as international students make up the majority of numbers in many postgraduate courses and research teams in science, technology engineering and mathematics.

“Attracting the brightest and mostambitious postgraduate and research students is critical if the UK is to maintain its quality reputation for research and innovation,” Beall said.

The government aims to cut down net migration to the “tens of thousands” by 2015 and there are fears that this will affect international students that want to study in the UK. Mark Harper, the Immigration Minister, denied calls from universities to remove overseas students from the net migrant count. He said there is no “logical reason” to make the change.

Universities UK has told the government that they should remove international students who are sponsored by universities from the net migration count so that these universities are spared from the government’s plans.

However, when asked if he could envisage a situation where the government could make this change, Mr Harper issued a “no”.

He added: “The international definition that’s used is that if you change your country of residence for more than a year, you are a migrant. Frankly, if we weren’t going to count students, it’s not obvious why we wouldn’t count lots of other people.”

Yes, [the students are] paying fees to come here, but in the same way someone coming here to work for a private sector employer is contributing to that company’s economic success. I don’t see any logical reason why we would treat them [overseas students] differently”.

Even though there has been a continual increase in the number of students coming to the UK from China, there has been a drop in the number of students applying from both India and Pakistan by 25% and 13% respectively.

Beall said: “These statistics for the first time provide real evidence that the changes to UK visa regulations may have dissuaded many students from applying to the UK, and in particular postgraduate students who are so important to the UK’s research output. The UK enjoys an excellent reputation around the world for the high quality of our education system, so the government needs to ensure that institutions have all the support they need to attract international students who make a tremendous academic, cultural and economic contribution to the UK.”