Wealthy targeting UK, experts say, as record numbers of visas issued to Russian and Chinese investors

The UK government issued 357 investor visas to Chinese nationals over the year ending 30 September, almost double the 178 such visas issued over the previous 12 months; while the number issued to Russian investors increased by 57% over the same period. Experts at Pinsent Masons said that the figures reflected a broader trend of increased investment into the UK from China, as demonstrated through recent research commissioned by the firm.

"Investors in UK assets are attracted by the country's long history of secure private property rights," said immigration law expert Jill Turner. "Strong codes of corporate governance in the UK also offer greater investor and creditor protection."

"A lot of Chinese HNWs [high-net worth individuals] have had almost all their wealth linked to the fortunes of the Chinese economy. That has served them very well but with Chinese economic growth slowing after a tremendous run some HNWs are rebalancing their portfolios away from China," she said.

According to the figures, 43% of all investor visas issued by the UK government now go to Chinese nationals - up from a 10% share just five years ago. A report commissioned by Pinsent Masons on Chinese investment late last year projected that £30 billion could be invested into the UK annually by 2025, predominantly in infrastructure and real estate.

Investor visas allow wealthy individuals to obtain UK residence if they wish to make a substantial financial investment in the UK. To qualify for a 'tier 1' investor visa, an applicant must have at least £2 million of their own funds and must invest at least 75% of this into government bonds, share capital or loan capital in UK-registered companies within three months of arrival. Unlike other categories of visa, applicants need not meet an English language requirement and are able to bring spouses and dependents to the UK to work or study.

The minimum required investment was doubled from £1m during the period that the figures covered to £2m in October 2014. However, foreign investment expert Yuri Botiuk of Pinsent Masons said that this change was unlikely to affect the UK's attractiveness to investors as most of those applying for Tier 1 status would see it as relatively modest.

"HNWs in Russia and China are concerned about diversifying their investments," he said. "Whilst the economic outlook in Russia and China has shifted in the last year, this rebalancing of assets out of emerging markets and into the more traditionally secure UK market is more about good portfolio management."