It’s the first time that a guarantee has been given to a privately-financed university accommodation project.

The Pittville campus scheme in Cheltenham is being developed by Uliving, the company formed by Bouygues Development and Derwent Living.

The development, which involves the delivery of 577 new bedrooms and the refurbishment of the 214 existing bedrooms, as well as the media centre, will be built by Bouygues UK while Derwent Living is responsible for operational and facilities management elements.

The student village will consist of 577 new build bedrooms with 214 existing bedrooms

Chancellor George Osborne said: “Better infrastructure is about improving people’s lives, and that’s why we are determined to get Britain building again.

“Our initial deal will deliver a modern, new student village to give the next generation of students the first-class facilities they deserve.

“In my Spending Review we announced that we’re extending our UK guarantees scheme to March 2021 to help kickstart other exciting infrastructure projects like this one right across the country.”

Nicolas Guérin Director at Uliving, said: “The financial model for the new student village in Cheltenham is an innovative funding solution, which was backed by the government.

“Now we’re able to start the delivery of this scheme which will upgrade the university’s existing student facilities and, we hope, attract more students and investment to Gloucestershire.”