The UK is rethinking its migration policy. A new visa aimed at attracting foreign investors is under review, even as the path to permanent residency becomes more restrictive. London is trying to strike a new balance鈥攖ightening long-term access while selectively opening its doors to targeted economic contributors.
Towards a new investor visa?
The UK economy recorded 0.7% growth in the first quarter of 2025, driven primarily by investment and foreign trade. Could renewed interest from foreign investors sustain part of this momentum? The Starmer government is reportedly exploring that possibility, with a new visa targeting high-net-worth individuals under consideration鈥攖hough no formal proposal has yet been released.
Early indications suggest the visa targets foreign investors who channel capital into sectors deemed strategic for the UK's future: green energy, artificial intelligence (AI), and emerging technologies.
This potential scheme is also seen as a way to rehabilitate the UK's image, which has suffered from recent immigration restrictions鈥攑articularly under the previous administration. Although Prime Minister Starmer has kept the objective of reducing net migration, his government may be seeking a more targeted approach. Since April 4, a suite of new immigration rules has made both entry and long-term residency more difficult for expatriates. The phasing out of the non-domiciled (non-dom) tax status has further impacted the UK's appeal to foreign residents.
Unlike the scrapped Tier 1 investor visa, the new framework would come with stricter eligibility criteria. That previous scheme鈥攐ften referred to as the 鈥済olden visa鈥濃�攚as abolished in 2022 amid concerns over the provenance of funds, particularly from Russia. This time, the government is emphasizing transparency and security, promising a more rigorous screening process to avoid the missteps of the past.
Still, some observers remain skeptical. Even with reinforced controls, they warn that the scheme could reopen the door to questionable capital. Whether the UK can successfully balance economic ambition with regulatory prudence remains to be seen.
Longer waiting period for permanent residency
Foreign nationals will now have to wait longer before applying for permanent residency. The government announced the change on May 19, as part of proposals outlined in its white paper on 鈥渞egaining control over immigration,鈥� published on May 12.
The waiting period will be extended from five to ten years. The aim is to redefine permanent residency as a 鈥減rivilege,鈥� based primarily on economic contribution, rather than a guaranteed 鈥渞ight.鈥�
The measure would apply to both new applicants and expats already living in the UK. However, the five-year threshold would still apply to dependents who entered the UK through a British citizen. The waiting period may also be shortened for migrants deemed to have 鈥渧ery high added value鈥� or those who can demonstrate a 鈥渘otable鈥� contribution to the economy.
Other proposals in the white paper include narrowing the list of shortage occupations open to foreign recruitment, tightening sponsorship rules for universities issuing student visas, reducing the length of student visas and strengthening English language testing for work and dependent visa applicants.
Only one measure actively encourages immigration: the plan to attract 鈥渉igh-value鈥� migrants. Foreign talents and 鈥渉igh potentials鈥� could be eligible for specific visa schemes.
For now, these are only proposals. The government has promised further details and is considering a public consultation. These measures are part of a broader strategy to reduce net migration. Some鈥攍ike the extended wait for permanent residency鈥攈ave sparked debate, including among government members concerned about a possible loss of foreign talent and reduced national appeal.
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