UTAS has 790 beds in Launceston, but demand for places is expected to increase once the relocation is complete in 2022.

In Hobart, students faced eviction due to a shortage of accommodation options, and a “floating hotel” was proposed, but later ditched.

Property Council of Australia, Tasmanian division executive director Brian Wightman said Launceston needed to start planning now for more people to live closer to the city centre.

“In moving UTAS to Inveresk, if we don’t start to plan to accommodate these students now, we will have a student housing crisis,” he said.

“We already have growing issues with rental affordability.

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“If you’ve already got rental stress due to a lack of supply in the market, then the problem is going to exacerbated by the face we have students coming into Inveresk.

“It’s vital that all levels of government and the private sector come together so that we don’t end up with a crisis.”

Launceston property values were the fastest growing of any regional city in Australia last year, which has started to flow into the rental market. It follows a rapid increase in Hobart, which has the worst levels of rental stress of any capital city.

Mr Wightman said it was up to governments and UTAS to identify ideal sites for medium to high density housing in Launceston.

“We need to look at different corridors for medium density housing, close to jobs, learning and services, that allows people to move about the city often without the requirement for a car,” he said.

UTAS planned to have a development application submitted with council by the end of 2018, but has extended this timeline.

UTAS pro-vice-chancellor Professor David Adams said the university was in talks with private investors about additional accommodation in Launceston.

“Housing is an issue for the community as a whole and the University, as a key driver of demand, is committed to doing our bit to ensure a vibrant, accessible future for Launceston,” he said.

“This is necessary to both lifting educational attainment among Tasmanians and in attracting students to the region.

“As we continue renewing and redeveloping the University in the north, we may, where necessary, decommission existing properties as they reach the end of their useful life.”

Professor Adams said UTAS was planning a phased development of student accommodation across Inveresk and the city, subject to City of Launceston approval.