The University of Oxford has secured the top spot in a prestigious global league table for an unprecedented eleventh consecutive year.
However, the University of Cambridge fell from joint third to fifth place in the Times Higher Education (THE) world rankings, while Imperial College London maintained eighth position.
Experts have warned the UK higher education sector’s global standing is "under unprecedented threat", with financial challenges "starting to hit" performance.
Overall, 25 British universities feature in the top 200 – one fewer than last year.
US universities dominated the top 10 with seven spots, as Massachusetts Institute of Technology took second place and Princeton and Stanford claimed joint third.
For the first time, Asia’s top-ranked institution placed above mainland Europe’s leader after China’s Tsinghua University overtook Switzerland’s ETH Zurich in 11th.
China is one of several countries in Asia that have climbed the league table this year, suggesting the longstanding world order “could be on the brink of definitive change,” THE said.
UK universities continue to be bolstered by strong reputation but there has been a trend of decline across metrics – including research quality, THE said.
The UK is suffering from financial challenges in the higher education sector, with all income scores decreasing relative to the rest of the world, it added.
THE ranked 2,297 universities from 118 countries and territories across the world in five areas: teaching, research quality, research environment, international outlook and industry.
University College London (joint 17th) and the University of Edinburgh (joint 29th) were among the global top 30.
China’s Zhejiang University (joint 34th) and Shanghai Jiao Tong University (39th) overtook King’s College London (KCL) which dropped from 38th to 40th place in the league table.
The London School of Economics and Political Science (LSE) returned to the top 50 in 47th place.
Phil Baty, THE’s chief global affairs officer, said: “The latest world university rankings suggest that we are witnessing a historic realignment of academic power from west to east.”
He added: “There are many symbolic landmarks in the 2027 rankings: the lowest number of US and UK universities we have ever had in the world top 200 and the highest ever for China; the first time we have three Asian universities in the world top 15; the first time a Chinese university is ahead of any in continental Europe.
“But the underlying data show that the seismic shift runs deeper than the eye-catching headlines – we are entering a new era that will remake the geography of academic excellence.
“The UK sector’s financial crisis is really starting to hit the country’s performance in the rankings: on all income metrics – institutional income, research income and industry income – UK universities are decreasing relative to the rest of the world and they are down significantly on research strength and productivity.
“The sector’s exceptional global standing is under unprecedented threat.”
Professor Irene Tracey, vice-chancellor of the University of Oxford, said: “We are immensely proud that the University of Oxford has been ranked the world’s number one university for a record-breaking eleventh consecutive year by one of the leading and most rigorous ranking systems.
“What particularly pleases me is the depth and breadth of excellence this result reflects.
“From the quality and impact of our research to our thriving innovation ecosystem and global networks, all alongside uncompromising and outstanding teaching and student experience, Oxford is performing at the highest level in what is an increasingly competitive space.
“This is something to celebrate and it is a testament to the extraordinary talent and dedication of our academics, students and professional services staff across the collegiate university as well as the rich higher education environment in which we operate.”
