A SHAKE-up of key worker housing rules could pave the way for a series of major developments proposed by Oxford University.

The changes would allow thousands of homes to be built for the university's staff and students on its own land, exempting it from social housing requirements.

It is part of plans published today by Oxford City Council to tackle the chronic shortage of housing for 'key workers'.

In its latest draft local plan, the authority says the changes will also make it easier for the NHS, schools and bus companies to build much-needed accommodation for employees.

The policy – similar to one in Cambridge – would free these employers from social housing requirements when building accommodation for staff on their own land.

Under existing rules, at least 40 per cent of all new housing in new developments must be for social rent.

City council planning chief Alex Hollingsworth said any exemptions would be on the strict conditions that homes were for a 'cross-section' of employees and would remain 'affordable in perpetuity'.

He said: "Learning from the experience in Cambridge, we want to help organisations which are struggling to find people because of the lack of affordable housing.

"Many of the larger employers have land they could use for accommodation and so we want to make our processes more flexible – in exchange for them committing to perpetual affordability.

"We would be open to proposals for 100 per cent employer key worker housing."

The proposals were yesterday welcomed by Oxford University, with pro vice-chancellor for planning Professor William James saying it potentially cleared the way for several long-awaited schemes.

This includes plans to turn Osney Mead industrial estate into a £600m knowledge park and the redevelopment of Diamond Place, in Summertown.

Both are part of wider university plans to build 5,000 new homes for students and staff over the next 10 years, which senior figures say would be 'unviable' under existing social housing rules.

Prof James said yesterday: "This very welcome news shows a great deal of imagination and creativity and we look forward to working with our partners to deliver more homes for our employees.

"The lack of affordable housing in Oxford affects everyone at the university, from academics to career researchers and our lower-paid staff who carry out other very valuable roles.

"For them, being able to rent affordable accommodation from the university would be a great help."

The city council's latest draft local plan also includes proposals to relax restrictions on building heights across Oxford and increase the density of developments.

Mr Hollingsworth said this could boost the number of homes that could be delivered over the next 20 years from about 7,500 to 10,000.

'Appropriate' taller developments would be encouraged at 'district centres', such as Cowley, Headington, Summertown and Blackbird Leys, which are outside of the protected views of the historic city centre.

There are also proposals to curb a rise in 'speculative' student accommodation proposals that are not backed by either of Oxford's two universities, as well as suggestions that air quality would become a key planning consideration for the first time.

The local plan documents will be examined by the scrutiny committee at a meeting starting at 6pm, in Oxford Town Hall, on June 12.