A bus company has responded to rumours its Chester-based depot is being sold for conversion into student accommodation.

Stagecoach operates a depot in Liverpool Road at what would make a prime student location because of its proximity to the University of Chester.

A 117-bed student scheme on the opposite side of the road recently opened in time for the autumn term.

This student accommodation in Upper Northgate Street, Chester, is now open.

A source close to the bus company said: “I’ve heard negotiations are taking place over the sale of the depot for student use, possibly, but not necessarily, for student accommodation.”

The source said if the deal went through the depot could be relocated down Bumpers Lane.

A spokesperson for Stagecoach Merseyside and South Lancashire said: “Stagecoach’s Chester bus depot is located in a prime location in the heart of the city centre and attracts significant interest from potential purchasers. There is no confirmed sale at this time.”

In 2014, the University of Chester produced a document called ‘Assessing Demand for Purpose-built Student Accommodation in Chester’ which did list the depot site for a possible 260-bed student complex.

Meanwhile, student housing schemes are coming on stream in Chester.

A 121-bed student accommodation complex in Trafford Street, Newtown, is now open for business. And the same developers, Primus Property Group and Property Alliance Group, have submitted plans for a 150-bed scheme just a stone’s throw away which would involve demolishing Oakbase House in Trafford Street.

Jansons Property is consulting over a proposed five-storey 377-bed development on the site of the railway station car park next to Hoole bridge.

Student accommodation being built at Tower Wharf next to Telford's Warehouse.

And three blocks for 350-students are shooting up next to Telford’s Warehouse in the Garden Quarter .

Plans for a 77-bed six-storey student block in Hunter Street, described as ‘monstrous’, have just been given planning permission on appeal.

There’s still no news on when construction will begin on the massive 550-bed student complex on Linenhall car park but it is expected to commence soon.