UK-based University of Oxford was ranked the best university in the world in Times Higher Education university Rankings, pushing US-based California Institute of Technology, the five-time topper of the list, to the second spot. Stanford University, University of Cambridge, and Massachusetts Institute of Technology took the third, fourth, and fifth spots respectively.

The global rankings saw 91 UK universities placed in the top 980 , which represents 5% of the world’s higher education institutions, judged on areas such as teaching, research and industry income. With 88 universities in the top 800, up from 78 last year, the UK is second only to the US for the number institutions in the world’s best 800.

Despite this success, UK universities lagged behind on the industry income indicator, which assesses the ability to help industry with innovations, inventions and consultancy, the extent to which businesses are willing to pay for research and a university’s ability to attract funding – with the nation’s best-placed appearing at just 127 in the rankings.

The UK is the world’s second most popular destination for overseas students, according to the British Council, with 493,570 enrolled in universities in 2013/14, up around 80,000 on the 415,585 five years before.