The recent increase in tuition fees has been linked to a drop in the number of students attending Britain's universities, but it seems that landlords remain positive that the demand for housing among the nation's undergraduates will hold strong.

As research from CBRE has revealed, investment in student accommodation in the first nine months of 2012 totalled a record £2 billion - a 145 per cent rise compared to the same period in 2011.

And it wasn't just that landlords were purchasing more properties or expanding their portfolios at a quicker rate than usual, as the figures also showed that the value of transactions increased dramatically.

According to the numbers, the student market has seen five transactions worth in excess of £100 million in the past 15 months, whereas before the third quarter of 2011 no single deal had exceeded £85 million.

Jo Winchester, head of student advisory at CBRE, said: "Total returns remain a key driver for investors, as they flock towards the impressive returns given by student accommodation for a second year in a row.

"Our data shows that student accommodation is outperforming other asset classes by some margin, as it has brought 9.6 per cent returns in the year to September 2012."

With investors seemingly undeterred by the falling number of students attending university, it seems that there is still a strong sense of optimism that demand for accommodation among undergraduates will not falter.

But despite the student lettings market being a particularly profitable one for landlords, they still have to take steps to safeguard their assets and prevent unexpected costs from threatening their yields.

Landlord insurance policies are an effective financial safety net when it comes to the private rented sector, as they can cover spiralling repair bills or essential maintenance work that investors are unlikely to have budgeted for.