A FORMER homeless hostel in Oxford could be turned into private housing.

Bosses at Oxford City Council say they are 'exploring options' for Lucy Faithful House, in Speedwell Street, which closed in January.

The council owns the freehold of the building and could buy back the leasehold 'to ensure the more productive use' of the site.

According to draft budget papers, this could cost the authority £1m in 2017/18.

Responding to questions from opposition councillors at a meeting on Monday night, executive board member for housing Mike Rowley said this did not necessarily mean only social housing.

The Labour councillor added: "What we mean is permanent housing that will contribute to alleviating Oxford's housing shortage.

"We will look at all productive options for use of the site, but we do that in a context where funding available for homeless support has been greatly reduced."

The closure of Lucy Faithful House meant the loss of 61 beds for people aged 18 and older on January 31.

Council officials have been keen to stress that most people staying there were relocated, but the Green Party said the city had lost 'a much-needed safety net'.

A deal was recently struck between the city council and four district councils to continue funding homeless accommodation in Oxford to counter a £1.5m cut by the county council set to take place over the next three years.

This will provide 141 but will still mean a further 144 are lost by April 2019.