NEW students will not be made homeless if financial problems dogging Jarvis hinder campus construction work, university bosses have assured.

Concerns about the troubled construction and engineering firm have led campus chiefs to pledge that all students promised a room will still be housed in September.

Jarvis - one of the country's leading private finance initiative contractors - has a 30-year lease with Lancaster University. It is a major player in the residences project' which will provide 3,400 new and replacement rooms in total.

But the company is working on a survival bid after warning it may have to write off nearly £200m from its accounts and has seen debt rise to £230m.

An announcement, which could seal Jarvis' future, is expected this week.

Lancaster University told the Citizen that contingency plans are in place to deal with difficulties during the project. Older blocks of accommodation, earmarked for demolition, are being kept on standby.

Director of finance and resources Andrew Neal said: "Our key priority is to ensure that every student who is offered a room on campus in September receives one.

"New students should be reassured that we are on course to achieve this. Detailed information will be sent out at the normal time after confirmation of A' level results."

Student union president Matt Freeman is hopeful the 1,600 new rooms, due for completion by September, will be ready.

But he concedes the picture could be different by Freshers' Week.

"I have had a look at the new facilities and they will be fantastic when they are up and running, albeit a little expensive," he says.

He says he is involved in talks with leading figures who deal with Jarvis, and is happy that students' concerns are being heard and acted upon.