The Prime Minister has hailed the drop in net migration after visa rule changes resulted in fewer people from abroad coming to work and study in Britain.
Sir Keir Starmer described data released on Thursday suggesting net migration has fallen to the lowest annual figure since 2021 as a "step in the right direction".
Latest estimates show the number dropped to 204,000 in the year to June 2025, down 69 per cent year-on-year from 649,000, according to the Office for National Statistics (ONS).
The decrease in net migration is being driven by fewer people from outside the EU arriving in the UK for work or to study, along with an increase in people moving out of the country, the ONS said.
Net migration peaked at a record 944,000 in the year to March 2023 but has fallen sharply since then. An estimated 898,000 people immigrated to the UK in the year to June while 693,000 emigrated.
The difference between the number of people moving long-term to the country and the number of people leaving has been on a downwards trend for the past two years.
Sir Keir told GB News: "Under the last government we saw the Boriswave.
"He promised that net migration would come down, but it quadrupled to nearly one million. That was unprecedented.
"It's now down to 200,000 or so, and that's a step in the right direction."
While the PM welcomed the figures, separate data published by the Home Office showed a rise in the number of asylum seekers being housed in hotels and a new record high of people applying for asylum in the UK.
Sir Keir said he was "determined" to close all asylum hotels as the Government has promised to end their use by the next election.
Mary Gregory, executive director for population and Census at the ONS said: "Net migration is at the lowest level seen since 2021, when pandemic lockdown restrictions were lifted and the new immigration system was introduced following the UK's EU exit.
"Non-EU-plus emigration is driven by Indian and Chinese nationals, who originally arrived on study visas, while nine out of 10 British people emigrating are of working age."
The lower estimates follow the introduction in early 2024 by the previous Conservative government of restrictions on people eligible to travel to the UK on work or study visas.
The Labour Government has also announced further plans aimed at reducing migration to the UK, including for "earned" settlement and a doubling of the wait time for migrants to be able to apply for indefinite leave to remain from five to 10 years.
There would also be conditions migrants need to meet, such as having a clean criminal record and speaking English to A-level standard, and they could be fast-tracked or forced to wait longer depending on their "contributions" to the UK.
Home Secretary Shabana Mahmood said net migration has fallen by more than two-thirds under the current Government but ministers are going further "because the pace and scale of migration has placed immense pressure on local communities."
She added: "Last week, I announced reforms to our migration system to ensure that those who come here must contribute and put in more than they take out."
In July, the Government also introduced changes to migration rules including to end overseas recruitment for care workers and raise the salary threshold again for skilled worker visas to £41,700 - up from £38,700 - as part of a bid to curb net migration.
The ONS figures also showed more British nationals are estimated to have left the UK in the year to June 2025 (252,000) than moved to the country (143,000).
But there were more people from outside of Europe moving long-term to the UK (670,000) than leaving the country (286,000).
There have been notable changes in migration levels for non-EU-plus nationals, however, as the number arriving in the UK has fallen 37 per cent year on year, while the number leaving has risen by 20 per cent.
Director of think tank British Future, Sunder Katwala, described the latest net migration estimate as "another significant drop" but research shows the public still think immigration is going up.
