The Indian subcontinent countries of India, Pakistan and Bangladesh led a "statistically significant" decrease in the net migration of citizens from outside the European Union (EU), according to the figures.
Immigration to the UK by so-called New Commonwealth citizens, which includes African countries, fell from 151,000 in the year ending December 2011 to 97,000 in the year ending December 2012, the UKs Office of National Statistics (ONS) said.
It is believed this fall is largely a result of fewer people arriving to study in Britain from these countries, confirming fears in sections of the UK Cabinet that Britain is making it tougher for Indian subcontinent students to apply for courses.
Tougher visa policies have been driving these overseas students, who pay much higher fees, to other countries like the US and Australia.
This is backed up by visa figures, which indicate around 180,000 immigrants arrived in the UK for formal study in the year to December 2012, compared to 232,000 the previous year.
However, Immigration Minister Mark Harper welcomed the trend.
"Immigration from outside the EU is now at its lowest level for 14 years. At the same time, there has been an increase in the number of sponsored student visa applications for our world-class universities, and an increase in the number of visas issued to skilled workers," he said.