Using a data‐set published by the Universities and Colleges Admissions Service, patterns of demand and supply for higher education courses from 1996/97 to 1999/2000 are analysed. Most universities saw a fall in applications and enrolments following the introduction of tuition fees, although this effect varies across institutions and regions of the UK. A model of applications and acceptances is developed and tested. Applications are sensitive to institutional reputation and location of a university within the UK. Acceptances depend on teaching funding per head and the number of funded places each institution is given.