A COLLEGE and developer have been accused of “naked greed” after slashing a cash contribution towards social housing for a controversial student development by more than £1m.

Merton College and McLaren Property were expected to give £1.25m to Oxford City Council to pay for new affordable housing in the city, as a condition of gaining permission for 286 student rooms south of Manor Place.

But it has now emerged the partners are claiming the sum should be reduced to just £200,000, because of the “abnormal costs” of building on the site.

The scheme already faces an array of opponents, with concerns centred on its size and proximity to the historic Holywell Cemetery.

Holywell city councillor David Thomas, of the Green Party, said the move was “appalling”.

He said: “This is nothing more than naked greed.

“People in Oxford already subsidise the city’s colleges, because students do not pay council tax.

“It is really important both the developer and college understand how catastrophic the shortage of affordable housing is and the pressure students put on the market.

“If they are going to build here, they need to show respect for people in Oxford.”

The city council demands 50 per cent of homes in new developments are “affordable” or developers contribute cash to build the homes elsewhere.

But developers can be excused from meeting the quota in full if they can prove it would make the scheme unviable.

McLaren Property spokesman Paul Erskine said: “The proposed Section 106 contribution recognises the abnormal costs associated with developing this site in a way that reflects the local environmental sensitivities and responds to the comments made by a number of local stakeholders, including the Oxford Design Review Panel.”

He added the developer would still commit £1m in community infrastructure levy funding.

It comes after a range of objections against the scheme were lodged, including from Oxford Civic Society and Oxford Preservation Trust, more than 80 members of the public and two neighbouring colleges.

The land falls within the Central Conservation Area, and is bordered by listed buildings.

McLaren Property and the college already scaled back the plans, reducing the number of student rooms from 349 to 286, but concerns remain about its impact on its surroundings and views.

Dr Harold Carter, who lives next door, said there was no longer “any public benefit to the scheme,”