HUNDREDS of new homes for university academics, teachers and nurses could be built in Oxford through changes to city-wide rules on development, it has been claimed.

A mounting crisis over the number of homes for key workers has led Oxford City Council to review its housing policy, which says 50 per cent of all new homes should be “affordable”.

Accommodation for key workers is not counted as “affordable” by the local authority, meaning developers wanting to build key worker homes must also build affordable accommodation.

It has led to concerns that the requirement has made building homes for university staff, teachers and nurses too expensive, despite warnings that a lack of housing for the vital workers has reached “critical levels” in Oxford.

Niall McWilliams, headteacher of The Oxford Academy, said: “We lose good members of staff who go to less expensive cities and towns such as Swindon and Cheltenham or up to the Midlands because they simply cannot afford to start a family or in some cases rent here.”

This week changes to housing rules were backed by senior figures at Oxford University.

Pro vice-chancellor for planning William James said allowing key worker homes to be included in the definition of “affordable” could make schemes for hundreds of homes for university staff viable.

The university proposed a scheme to build 200 homes for its staff 10 years ago at the former paper mill site in Wolvercote, but withdrew the plans because the affordable housing policy made it too expensive.

Mr James told the Oxford Mail: “In spite of admirable intentions, the current policy has resulted in relatively little social housing being built.

“By making the definition broader, a lot of people could benefit.”

City council leader Bob Price confirmed the change of the definition to housing rules would be considered as part of the local authority’s review.

He said: “We are now looking at how key worker housing can be accommodated into the distribution of affordable homes, as part of a long-term solution.

“That could be affect developments planned at the Northern Gateway, Oxpens or Osney Mead.”

Recommendations of the policy review were expected to be reported in the autumn, he added.