Stay-at-home students could change the face of properties most lucrative market as the soaring costs of tuition fees and living costs start to impact on their finances.

Student landlords have experienced a boom in lettings in recent years as numbers of students surged to the 2.5 million mark.

Now, some property analysts fear student letting has reached saturation point in some cities – especially in the north – and the rising costs of tuition could mean students opt to live with their parents rather than move in to halls or shared houses.

From the start of the next academic year, universities can charge annual tuition fees of up to £9,000 – up from the current £6,000.

A study by insurance firm LV= predicts the number of students living at home will double to 47% over the next 10 years and to more than 50% by 2030.

Some cities could see student numbers drop – by up to 52% in Newcastle, 43% in Lincoln, 42% in Sheffield and 41% in Swansea and Portsmouth, with worst-hit universities mainly in the north, the report warned.

John O’Roarke, managing director of LV= home insurance, said: “The LV student towns report shows how student life is set to be transformed over the next decade, as the impact of rising tuition fees forces university students to reassess their finances and living arrangements.”

Property investment expert Jo Winchester of international consultants CB Richard Ellis (CBRE) claims many university cities in the northwest have reached saturation point for large student accommodation developments.

Ms Winchester disclosed 10 specialist banking teams had funds to invest in student developments in the region, but could not find identify suitable projects.

Manchester, said CBRE, was the only place in the northwest with student letting ‘opportunities’, while Liverpool, Preston, and Lancaster already has enough accommodation or plenty of projects in the pipeline.