DEMAND for student accommodation in Bournemouth and Poole continues to outstrip supply.

The latest student accommodation report from international property consultants King Sturge says that in the UK there were over £700 million of transactions in the sector last year.

As student numbers continue to rise there were more than 1.43 million in full-time higher education in 2007 - an increase of almost six per cent on the previous year. The student accommodation sector is now worth £20 billion.

Anthony Gibney of BH Lettings in Bournemouth said: "From my experience it's the one and two bed flat market that is oversupplied at the moment. We don't have problems letting them. It's a competitive market. Students expect more for their money."

He added: "Signpost Housing is building new studio apartments in Cardigan Road, Winton for students. But what happens to the houses in this area that were traditionally let to students? If I had a house there I'd move it on now."

Senior business development manager at Blandford based Signpost Housing Ralph Williams said: "Signpost deals with all universities across the south west and has several developments in Bournemouth - one of which is in Cardigan Road, Winton. Signpost is one of two partners with Bournemouth University (BU).

"Our developments currently under construction will create 500 student places in Bournemouth. The process is controlled by the university. We meet their criteria. Signpost is committed to investing £45m over a four-year period," he added.

BU contributes approximately £240m to the local economy. Its press officer Charles Elder said: "Bournemouth University currently has over 16,000 students from all over the world. Around 10 per cent of these are based at partner institutions around the region - Kingston Maurward at Dorchester, University Centre Yeovil, Bridgwater College in Somerset to name just three.

"New halls of residence are currently being constructed on Holdenhurst Road. We have several sites managed in conjunction with external companies - Unite and Signpost Housing Association are two partners. Our block at the Lansdowne - Cranborne House - was built in conjunction with Berkeley Homes a few years ago."

"The number of university-managed places currently runs at about 1,600 in halls of residence with a further 630 student rooms available in 132 properties provided through the Unilet scheme - where the university sublets properties from local landlords and rents directly to students," he commented.

BU has recently opened its first venture in Poole town centre, Corfe House at Pitwines in Poole, near the Dolphin Shopping Centre which houses 300 students. The university's new block on Holdenhurst Road will cater for approximately 400 students.

Mr Elder added: "Our accommodation service has just opened its own letting service which will link students directly with private landlords in the area giving the university a more direct link with both landlord and student."

Branch manager of countrywide in Bournemouth Brian Baxter concluded: "This office deals with properties around Talbot Campus, Bournemouth town centre and Charminster. We have 10 student lets going through this month and we have no more properties left. We're looking for more relevant properties and have plenty of applications."