The 38-year university deal is the biggest in the UK

Under the agreement, Jarvis will build and manage as many as 4,426 rooms at Lancaster University over the next 38 years, the company said.

Jarvis put the capital cost of the work at �124m. The news comes a week after the firm quit all rail maintenance work, citing lower than anticipated profits and "reputational issues."

The company had been blamed for a derailment at King's Cross last month, and remains under investigation in connection with the Potters Bar train crash last year.

Jarvis is now working with more than 20 universities and colleges to provide accommodation for more than 20,000 students across the UK.

The company is also responsible for maintaining large sections of the UK's road network.