It is the first time that a full year of data has been available since the UK voted to leave the EU last June.
The figure is still short of the Conservatives' target to reduce net migration to the "tens of thousands".
Net migration is the difference between people coming to the UK for more than a year, and the number of people leaving the UK for a year or more.
In this 12-month period, 572,000 people arrived in the UK, and 342,000 emigrated, reports BBC.
The Office for National Statistics said the 106,000 fall on the previous year's net migration figure was the largest annual decrease recorded.