THE city's target of 2050 affordable homes could treble if major employers use their land to build key worker housing but BMW has ruled out its site.

Oxford City Council's preferred option to solve the key worker housing crisis is for firms, such as BMW and the NHS, and smaller businesses to explore whether homes could be built on its land.

But BMW has told the Oxford Mail its site is 'not appropriate' for housing.

Developers and campaigners also warned it was 'unrealistic' to expect companies to give up land that could be used for expansion.

City council leader Bob Price said the option had already gained support from a range of employers.

Tony Nolan, director of Cantay Estates - one of the city's largest developers - said relying on firms to build houses for their employees was problematic.

He said: "The proposals in respect of key worker housing seem to rely heavily upon the employer groups actually possessing surplus land that would not otherwise be required for business expansion or future proofing.

"The concept of employer groups catering for staff on its own landholdings, is somewhat Victorian and hardly offers scope for balanced communities.

He added: "Apart from Oxford University it is highly unlikely that other key worker groups are in a position to pursue it without substantial third party support in terms of land and capital."

Last week the city council pledged £64m to build 2050 affordable homes by 2023 and revealed a plan to use employers' land could treble that.

The city's Liberal Democrat leader Andrew Gant backed the move but said it was only part of the solution.

He said: "Asking employers to build for their own employees on their own land is a good idea, but can only be part of the solution.

"It also risks creating ghettoes, genuinely mixed communities are better."

He added: "We also want to see innovative models of design and ownership which provide homes for local people and workers in essential sectors, fixed at an affordable price and kept there."

Land freed up by the new £4.9m sports centre in Horspath has given BMW more space.

But BMW said its site would remain a manufacturing facility.

In a statement the company said: "We support the concept of affordable housing and work with the council, as do other major employers, to review housing needs across the city and surrounding areas.

"While we appreciate there is a need to provide more homes locally, our site is a major manufacturing facility and is not itself an appropriate location for new housing development."