Student property fund manager Mansion Group have denied that cuts in university spending will have a negative impact on its business.
Universities are facing nearly £1 billion of budget cuts in the next financial year, which many claim will force them to cut student numbers.
But Mansion's development director Mark Stubbs urged investors to "look behind the headlines". "In London we have a situation where there are 15 students to everyone bed available," he said. "This is obviously a large imbalance between supply and demand.”
He added that "investors must put statistics in context", pointing out that predictions that Manchester University is to cut 200 places will mean just a 0.5% fall in overall numbers.
The Mansion Student Accommodation fund is listed on the Channel Islands Stock Exchange.