WORK started yesterday on a £9m housing development scheme in Oxford city centre.

A2Dominion is beginning work to demolish Luther Court in Thames Street to make way for 42 new homes for private and affordable rent, plus a hostel for students.

Gerry Walker, A2Dominion’s regional development director (north), said: “We are pleased to be starting on site at this exciting redevelopment project.

“The work will not only provide high quality new homes, replacing the existing Luther Court scheme which is almost 30 years old, but improve access and privacy for residents.”

The new development will have eight one-bedroom homes and 35 two-bedroom homes for rent while there will be 82 bedrooms for foreign students at Bellerby’s College.

Oxford City Council gave permission in November 2012 and hoarding was put around the building last month.

Existing residents of Luther Court have been moved to a permanent new home.

The building work is expected to be complete in August next year.

A2Dominion is a not-for-profit organisation and says it will plough any profits back into providing affordable housing.