Universities and colleges are starting to back out of supporting student housing applications as the market in some areas becomes saturated.
The latest scheme that has failed to win backing from learning institution is a proposal for a 48-bed hall of residence over a basement wholesale warehouse in Blackburn, Lancashire.
Blackburn College has refused to offer support to the developer and neighbours around the Devonport Road site have launch a petition protest against the scheme.
Derek Heap, deputy director of resources at Blackburn College, said: “This isn't the first plan submitted for the site. We had a meeting a few months ago but we decided not to support it.
“The property was too cramped and there were concerns about controlling parking."
The site is the former warehouse headquarters of now defunct Time Computers, and has stood empty for several years.
More than a year ago, a plan to convert the building in to a private school was rejected by the council.
A week ago, Aston University spoke out against plans to develop two city centre tower blocks in Birmingham for almost 500 student flats.
The institution claimed student numbers forecasts citing a need for the housing were not correct and the flats would lead to an oversupply of accommodation.
Merchant banks have also indicated they are cooling on offering finance to big student developments because they are over exposed and feel the market is saturated in many areas.
However, some cities are still short of accommodation.
In Lincoln, the remaining students have been moved out of a shed shelter for 300 freshers who had nowhere to go on starting their courses. The university has managed to find better homes for all of them .
In Ormskirk, several hundred students are sharing chalets at a holiday camp because of a shortage of homes.
Other hotspots looking for more student housing are Penrith, Cumbria; Northwich, Cheshire and Aberystwyth, Ceredigion, Wales.
