Thousands of students could be disappointed this summer because the number of applications to Leicestershire's universities has risen at almost twice the national average.

All three universities have seen an increase of between 17% and 18% – equal to at least 10,000 extra applications across the county.

This compares with a 9.7% increase nationwide, which itself was described as a "crisis".

At the University of Leicester there are more than 20,000 applications for 2,900 places this year.

It warned that students who narrowly miss expected grades could be rejected because of the competition for places. Higher unemployment rates, as well as Leicester's increasing reputation as a good place to go to university, are being cited as reasons for the higher number of applications.

Richard Taylor, the University of Leicester's director of marketing, said: "We are struggling with demand. Clearly this is good news in the sense that more students are applying and wanting to come to the University of Leicester, as University of the Year, but it is certainly going to give us some issues this summer.

"In a normal year, without this pressure, we would look sympathetically on students who have narrowly missed their grades but that will be difficult this year. Any student who gets the required grades will get a place but the problem will be with those who narrowly miss out."

The universities of Leicester and Loughborough have seen an 18% rise in applications.

De Montfort University has seen a 17% rise but says it hopes to soften the impact by offering more places.

A De Montfort spokesman said: "We are expecting to recruit more students this year than last year because of the significant increase in numbers of people applying."

A spokeswoman for Loughborough University said: "Loughborough University continues to grow in popularity and we have seen an increase of just over 3,000 applications since this time last year, spread equally over all of our programmes."

Rachel Palmer, 22, of Wigston, has just completed a two-year national diploma in media at South Leicestershire College, in South Wigston, and has been offered a place at De Montfort to study media production.

She said: "I am worried about the economy because I know it will be harder to get into certain jobs.

"I want to work in radio or TV, but I know I want to go to university."

The Department of Innovation, Universities and Skills has imposed a cap on additional numbers at university for the next academic year so that the cost to the Government of paying fees, grants and loans does not increase.

The Conservatives' universities spokesman, David Willetts, said: "Ministers are sleepwalking into a crisis in university applications."