Students could find that finding suitable accommodation will be far more difficult than last year, and is urging them to start looking now to avoid disappointment.

Graham Kinnear of Landlord Assist blames tighter control on mortgage lending imposed by lenders for a supply shortage of property in the private rented sector. He believes that this could lead to less choice and increased rents for properties in many university towns.

Kinnear said: “The economic downturn has made it increasingly hard for private landlords to finance new student housing and this could lead to demand far exceeding supply in many university areas.

“Students may find it more difficult than in previous years to secure accommodation and may find themselves having to pay higher monthly premiums as increasing demand will ultimately drive rent up.”

Stephen Parry, commercial director at Landlord Assist, said: "There is a real need for more quality student accommodation throughout the UK. By restricting the availability of finance, landlords are unable to expand their portfolios and the ultimate losers are those in need of rented accommodation – students.”

Despite a shortage of quality housing stock, the company said that higher education and student accommodation remains the best performing property sub-sector for landlords, with strong levels of demand, full occupancy levels and good prospects for rental growth in 2011.