A decade of dramatic improvements at the University of Leicester has seen it named the best in the country.

The institution won the coveted title of University of the Year from a panel of judges, which praised the way it encourages people from less privileged backgrounds to do degrees, while retaining high standards.

The award, from Times Higher Education, recognises all-round excellence in research, teaching, the experience of students and admissions.

The University of Leicester beat competition from the country's major universities, including Oxford and Cambridge, to take the title.

Professor Bob Burgess, vice-chancellor of the University of Leicester said: "There is real excitement around the place and this award should have a tremendous impact on potential students or people who are considering coming here to work. It's a terrific morale boost for staff.

"The judges acknowledged that we are a university that tries to extend its reach and widen participation to the students who perform well in school and college, but are from social groups or areas of the country that do not traditionally come to university."

The university has done this by strengthening its links with schools, while at the same time investing in research and its buildings.

For the first time this year, the number of students at the University of Leicester has surpassed 20,000.

Kirsten Dyer, of the university's students' union, said: "I've been here for four years and I've seen great progress in that time. There's been investment the library, the halls of residence. I can't say a bad word about the place.

"I'm glad we've finally been recognised. We really are a hidden gem.

"There's a real home-from-home atmosphere but a great academic atmosphere too."

In recognising Leicester's achievements, the Times Higher Education said the university was "elite without being elitist".

Ann Mroz, the editor of Times Higher Education, said: "Few entrants embody the spirit of these awards more than the University of Leicester. Its triumph in this category, at the third time of entering, sends out a powerful message to the rest of the sector on the nature of constantly striving for excellence.

"Leicester's turnaround in the last decade has been extraordinary, and it is encouraging to note that the university has risen through the league tables without feeling the need to compromise on its widening participation initiatives."

A spokesman for the judges' panel highlighted Prof Burgess's leadership, saying: "Ten years after he first accepted the task of leading Leicester out of the lower leagues, he now has a strong claim to being among the elite.

"Its continued commitment to, and real success in, widening access to students from non-traditional groups made it the stand-out choice in a very tough competition.

"On access, Leicester is unique among its research intensive peers. It exceeds its benchmark for widening participation."

Last year, the competition was won by the University of Exeter. Leicester's news follows the success of Loughborough University, which was recently named university of the year by the Sunday Times.