Prime Minister Sir Keir Starmer (Image: Getty)
Net migration to the UK stood at an estimated 728,000 in the year to June 2024, the Office for National Statistics said.
The figure is down 20% from a record 906,000 in the year to June 2023.
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The total for the 12 months to June 2023 has been revised upwards by 166,000 from the initial estimate of 740,000.
This is because the ONS now has more complete data for this period. It has also improved how it estimates the migration behaviour of people arriving in the UK from outside the European Union.
A similar revision has been made for net migration in the year to December 2023, which was initially estimated to be 685,000 and is now estimated to be 866,000, an increase of 181,000.
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Net migration is the difference between the number of people arriving and leaving the country.
Some 1.2 million people are estimated to have arrived in the UK in the year ending June 2024, while 479,000 are likely to have left.
This compares with 1.3 million who arrived in the UK in the year to June 2023 and 414,000 who left.
The drop in net migration has been driven by a fall in the number of dependants arriving in the UK on study visas from outside the EU.
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Commenting on the latest migration figures, ONS director Mary Gregory said: "Since 2021, long-term international migration to the UK has been at unprecedented levels.
"This has been driven by a variety of factors, including the war in Ukraine and the effects of the post-Brexit immigration system. Pent-up demand for study-related immigration because of travel restrictions during the coronavirus pandemic also had an impact.
"While remaining high by historic standards, net migration is now beginning to fall and is provisionally down 20% in the 12 months to June 2024.
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"Over that period we have seen a fall in immigration, driven by declining numbers of dependants on study visas coming from outside the EU.
"Over the first six months of 2024, we are also seeing decreases in the number of people arriving for work-related reasons. This is partly related to policy changes earlier this year and is consistent with visa data published by Home Office.
"We are also starting to see increases in emigration, most notably for those who came to the UK on study-related visas. This is likely to be a consequence of the higher numbers of students coming to the UK post-pandemic who are now reaching the end of their courses."