Figures released by UCAS on 30th January report a headline decrease of 7.4% in applications for university places in the UK, taking into account the applications received for the 15th January deadline, with a slightly larger fall in England than in the rest of the UK.

Nevertheless, UCAS say that demand for higher education will continue to outstrip the number of places available in 2012. Applications are already 50,000 ahead of the number of acceptances in 2011, and last year UCAS received over 100,000 further applications between January and the close of the cycle.

Commenting on the data Sarah Jones, an associate director at DTZ, part of UGL Services, said: “It is not surprising to see a fall in the numbers of students applying for university following the rise in fees. However, overall there is still an enormous appetite from students to continue with higher education. In order for the prospect of studying to continue to be financially feasible for the majority of people, help is required in other areas and accommodation is certainly one where more can be done.

“At present - and particularly in London - there is not enough affordable accommodation with developments focusing too much on providing high end, more expensive solutions. Providers need to think more innovatively about accommodation.

“Students are facing increasing financial pressure and potential debt of over £50,000 by the time they complete their studies due to rises in fees. Upfront costs, such as for accommodation, need to help mitigate this and the (student accommodation) market has to evolve accordingly, providing more affordable and diverse stock."