DURHAM University and a housing association have joined forces to provide extra student accommodation in a £2.5m scheme.

The university and the Three Rivers Housing Group have started talks aimed at accommodating about 80 more students in and around the city.

Three Rivers has agreed to spend up to £2.5m on the scheme's initial phase and has already acquired and refurbished several houses.

The partnership was initiated to explore housing options for the university's growing number of students. It is expected that the demand for rented accommodation will continue to rise for at least the next three years.

Durham University has about 10,000 undergraduates and 2,000 postgraduates studying at its two sites in Durham City and Stockton. Just under half the Durham students live out of college. Most of these are in their second year but there are also several who continue to live out in their third year.

University pro-vice chancellor Prof Alan Bilsborough said: "It is important for the university to ensure that rents for good quality properties are kept within the reach of students. This new partnership will go some way to meeting their needs."

Durham's housing market has been under pressure with house prices spiralling and rented accommodation becoming less affordable for students. As well as offering reasonably-priced properties, the partnership aims to provide a greater choice of housing.

Three Rivers also plans to improve maintenance and management standards.

Clare Hepworth, chairwoman of Three Rivers, said: "Although this is a new venture for us, we have been involved in affordable housing in Durham for over 25 years.

"The student population is a major community in itself and we are pleased to be able to help meet some of its housing needs and bring up housing standards."

The partnership follows Three Rivers' commitment to spending £9.2m on homes in Darlington, Easington, Durham, Peterlee and Teesside after securing a £4m Government grant. It recently completed the £400,000 Green Court in Gilesgate, Durham.