A DEVELOPMENT made up entirely of key worker and affordable homes near an employment hub could help solve the city's housing crisis.

The 83-home scheme could be on built on playing fields next to William Morris Close, Temple Cowley, even though Oxford City Council has designated the site an open space.

Prospective tenants would be selected for the homes from a council approved list of key worker groups, which could include social workers, schoolteachers and nurses, paying a discounted rent of at least 23 per cent off market price.

About 12 per cent of the homes would be used for social housing, with potential occupants selected from council waiting lists.

Social solutions firm Openwell, which saw its earlier plans for 70 'pod homes' on the site rejected, put in the plans with developer and site owner Cantay Estates.

Patrick McDonald, founding partner at Openwell, said: "Oxford is desperate for key worker housing.

"It should be one of the most exciting cities in the world – full of young people solving the major issues of our time – but they need to have somewhere affordable to live.

"We have the materials, we have the designs and despite all the whinging about space, we do have enough space."

He added: "We hope to break the mould with this and hope the council will consider it a potential solution. Then maybe it can be rolled out elsewhere in the city."

A government planning inspector is set to rule on a separate plan by Cantay for the site, for 45 homes, and if the ruling goes against the council it could unlock the site for housing.

The playing fields – formerly used by the Lord Nuffield Club – have been disused for a number of years and the council has rejected a several applications for the site.

Cantay Estates director Tony Nolan said the housing crisis was too severe to ignore the opportunity this time around.

He said: "The majority of the working population, particularly in science, education, social services, transport and teaching sectors, cannot afford to live in or near Oxford and are faced with an extensive and expensive daily commute.

"This is obviously not sustainable and it is only a matter of time before essential workers have little choice but to move away.

But Oxford City Council leader Bob Price said the council would stand firm.

He said: "Anything which improves affordable housing and key worker housing, given the crisis in the city, is a good thing.

"It's not the model we have issue with, it's the site – which is a place of open green space, in an otherwise crowded area of the city.

Mr Price said it was 'regrettable' that the site had not yet been brought back into use but that it would not succumb to pressure.

He said the council's preferred option to solve the city-wide crisis was for employers, large and small, to use their own land for housing which staff could then occupy for discounted rents.

He said: "We are getting a lot of support for that option and we have had a range of employers coming forward, not just the public service for nurses and teachers but also the private sector and universities."