With 30,000 extra places being offered in this academic year, compared to last year, means that student accommodation providers in some university towns have been put under severe pressure.
Indeed, experts in the sector say there is a chronic under-supply of quality student accommodation in many towns and cities though the BBC cites the worst affected areas as being Aberdeen, Bristol and Winchester.
Students in Bristol are finding themselves having to sleep in bunks which have been provided in rooms meant for one person which means they just have one desk and a single sink.
Areas of demand for student accommodation
The BBC said that some students who turned up for their studies in Winchester and Aberdeen had to be housed in hotels because there was no other accommodation available for them. Most of these have now been offered permanent accommodation.
A spokesman for Bristol University said that the accommodation situation was 'not ideal' and that the institution was working to deliver a solution.
This situation has come about because of the government's policy of relaxing a restriction on student numbers in universities and the situation could get worse next year when restrictions for many institutions will be removed altogether.
The BBC's investigation has revealed that there isn't enough accommodation for students in the country's universities and that includes private landlord provided accommodation as well as halls of residence.
Private landlords to profit from boom in student numbers
The result is that private landlords have been investing with confidence in university towns knowing that there is strong demand and this demand is not likely to dip in the near future.
However, these private sector landlords should also be aware that the chronic shortage of university accommodation has not gone unnoticed by corporate investors who are investing in popular university locations.
These investors are now providing private accommodation that is similar to the university’s own halls of residence and come in large modern blocks to high standards. They generally cost more in rent but they come with lots of mod cons.
Despite this, landlords who have invested in student accommodation are enjoying higher than average yields and returns than those landlords who have a single buy to let property.
Student accommodation developers say that the areas of greatest demand where students are wanting purpose-built accommodation are Aberdeen, Brighton, Bristol, Birmingham, Edinburgh, Winchester and Canterbury.
One knock-on effect for private landlords is that the demand from students for accommodation in many areas close to universities has pushed up rents for everyone else.
