Unite's vision - but many would-be tenants are stuck in hotels

At least 200 students are now in hotels because the Grand Central hall of residence, being built by private firm Unite, is not finished.

An attempt was made on Saturday to move in about 100 of them - but then the second floor flooded.

Unite has apologised "unreservedly" and promises to compensate the students.

The National Union of Students (NUS) said the hall of residence was supposed to house 500 students from Liverpool and Liverpool John Moores universities, but only about half had been able to move in when they arrived last week.

The others were in small groups up to 15 miles away.

Verity Coyle, NUS welfare vice-president, said the late delivery of the building had blighted the beginning of people's university careers.

The Grand Central rooms are near Lime Street Station

"This is a vital time for new students - they learn about their department and the university environment, meet tutors, investigate services and facilities and make new friends.

"Most have paid their tuition fees and rent in advance - at the very least they should get their rooms as promised and have access to university facilities, the same as everyone else.

"This is supposed to be the best week of your life - but they are stuck in little groups, not being able to mix."

Apology

Unite Group prides itself on being "the UK's leading provider of value-for-money, high quality accommodation services for students".

In a statement, it blamed the delay on builders' having "experienced unforeseen problems".

It said the 195 customers who were affected - the NUS said 260 - had been offered bed and breakfast accommodation in one of two hotels with an evening meal or a �10 food allowance.

It is extremely regrettable that some students have been delayed in moving into their accommodation Unite chief executive, Nick Porter

All would get a "compensation package".

But it could be 5 October before all the students are in their chosen accommodation.

Unite Group's chief executive, Nick Porter, said: "We are very aware that this is an important time for our customers and have put in place comprehensive procedures to ensure minimum disruption until the remainder of rooms are ready.

"It is extremely regrettable that some students have been delayed in moving into their accommodation in Liverpool.

"We apologise unreservedly to our customers who have been temporarily affected and we are doing our level best to ensure that they are comfortable and happy until they can move in."

The NUS said the failure to complete a hall of residence for the start of term was inexcusable.

"Unfortunately this is not the first time a private accommodation provider has failed to live up to its promises - NUS has had many cases to deal with in the last couple of years," said Verity Coyle.

"Our immediate aim is to make sure that students who have been stranded are treated fairly and with dignity.

"However, this whole episode is bound to create further debate in the student movement and the wider community about the suitability of private providers."