The lack of new and affordable housing in Oxford is having a negative impact on Oxfordshire’s economy and constraining growth, according to Oxfordshire Chamber of Commerce’s president.

Peter Smith said the housing crisis was “affecting the economic health of the county and inhibiting its success”.

He said the chamber’s business-leader members “feel that potential workers are unable to move into the area because of the high house prices and their businesses are, as a result, being held back due to problems recruiting and also retaining key employees. This is clearly hampering the local economy.”

He said Oxford was now “the most unaffordable place to live in Great Britain”, with the average house price of about £430,000 more than 16 times the local average wage. And he criticised local councils for failing to ensure an adequate supply of new and affordable housing.

He said: “In 2013/14, not a single affordable house was built in Oxford, according to figures from Oxford City Council.

“Completion of an Oxfordshire-wide Strategic Housing Market Assessment (SHMA) identified that Oxford needs an estimated 24,000 to 32,000 new homes in the period to 2031.

“The city council does not feel that this target is achievable and is looking for help from neighbouring district councils and also a review of the Oxford Green Belt. The housing estimate for Oxfordshire is approximately 106,000 by 2031.”

Mr Smith backed moves to review the city's Green Belt, which has been in existence for 60 years, questioning whether “it will stand forever”.

The city council, county council and the four district councils last year agreed to a review of the city's Green Belt. But last week, South Oxfordshire District Council leader John Cotton said it would not now participate.

David Edwards, the city council’s executive director for city regeneration and housing, said the council endorsed Mr Smith’s comments.

He said: “Oxford has overtaken London as the least affordable city for housing in the UK.

"This is having a significant impact on the economy of the city, as it is making recruitment of staff by the city’s businesses, hospitals, universities and schools increasingly difficult.”

Mr Edwards added: “There is a pressing need to deliver housing to meet Oxford’s need, as identified in the Strategic Housing Market Assessment.

"This is recognised in the Strategic Economic Plan for Oxfordshire, and by other independent experts."

“The city council is actively participating in the countywide work to identify the most sustainable and deliverable locations for additional housing to meet Oxford’s needs.”

Mr Smith said Oxford generated about a third of the county’s jobs and contained about 70 per cent of its largest employers.

And he said that if new homes were built outside Oxford, they had to be “in places with excellent transport links with the city".

He added: "More than 45,000 people commute to the city daily, many unable to afford to live there "There is a real shortage of affordable houses in Oxford."