Foreign investors welcome?

The figures certainly suggest a slowdown. Home Office statistics show £88m in foreign investment was generated through such visas during the second quarter of 2015, down from £251m for the same period in 2014 - an 82 per cent drop.

But we should be wary of obvious conclusions. Many people brought forward applications to avoid the first of the more stringent changes that came into force in November 2014. This was reflected by a marked rise in applications during the preceding months.

Numbers had otherwise risen every single year from 2009 up to the 2014 peak, which included 357 Chinese nationals.

The upward trend was slowed only when the entry requirement became to buy at least £2m of British assets, twice the previous amount.

The recent red carpet welcome given to Chinese president Xi Jinping on his state visit by the Prime Minister, David Cameron, seemed a clear political signal to entice Chinese investors back to the UK. Indeed, President Xi Jinping told Reuters: 'The UK has stated that it will be the western country that is most open to China.'

More general analysis also suggests that the UK remains a leading destination of choice. London is one of the world's most attractive cities for foreign investment, according to IBM's annual Global Locations Trends report 2015.

New hurdles

One of the biggest stumbling blocks appears to be not so much the investment thresholds but the new requirement to open a UK bank account.

This is often only proving straightforward for applicants already here and with a valid UK visa.

James Brokenshire, the UK immigration minister, said the government included the requirement as part of reforms to include 'greater scrutiny'; a common enough refrain since the crisis of 2008.

In addition to the introduction of a requirement for a UK bank account before applying, since September 2015, applicants must also provide an overseas criminal record certificate listing all convictions in any country where they have resided continuously for 12 months or more in the 10 years prior to application.

The introduction of good character requirements and the increase to the investment threshold appear to be more politically motivated changes. But they should be seen in the context of wider changes to the banking climate rather than as a deterrent aimed at the wealthy.

There are other options, which in some cases grant faster entry into the EU if the new rules prove problematic. Tier 1 requires a five-year residence commitment from the applicant, (though ultra-high-net-worth individuals can still fast track settlement with substantial financial investments of at least £5m or £10m).

By contrast, countries such as Portugal, Spain and Malta have either a quicker route to settlement, more relaxed residence requirements or a lower minimum investment.

The Isle of Man also has an attractive investor programme that allows applicants extremely flexible investment and residence options. These allow investment by people into their own businesses and to meet Isle of Man residency requirements through residence in the UK.

There can be little doubt about the value of visa schemes aimed at the wealthy, generally to the world's economic opportunity, attracting about £4.6 ($7bn) a year in foreign direct investment to countries which offer them; a sum growing by approximately 20 per cent each year.

Despite the changes to Tier 1, the UK continues to be a desirable base for businesses and companies given its ease of access to the European markets, and for individuals and families seeking a culturally vibrant lifestyle and relative political stability.

Its robust legal system coupled with flexible financial opportunities, world-class educational institutions and a strong history of promoting business and innovation make it a top pick among wealthy investors, entrepreneurs and businesses alike. The gates are still very firmly open.

Ivon Sampson is an immigration specialist at law firm Healys

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