AN “unauthorised” housing tax imposed by Oxford City Council last year is unlawful, it has been claimed.

The tax that could force Oxford’s two universities to hand over millions of pounds towards social housing in the city is legally flawed, lawyers acting for university colleges have warned.

And they say that “no account should be taken” of the measures implemented in December, in the light of “significant legal, policy and viability objections”.

The universities previously argued that making universities contribute to social housing as the price of being allowed to build new student accommodation would hit their ability to compete as leading academic institutions. But colleges – including Christ Church, Merton, Lincoln, Jesus, University and St Catherine’s, along with the Estate Bursars’ Committee – are turning to the law to fight.

In addition to being “an unauthorised tax on the development of student accommodation,” the lawyers accuse the council of striving “to rebalance land values within Oxford”, with land prices driven down.

The policy introduced last year adds a significant cost to student accommodation, with a new charge of £140 per square metre, plus a five per cent administration charge – with the prospect of the figure “unilaterally” increased by the council.

David Elvin QC and Stephen Morgan, of Landmark Chambers, acting for the colleges, say: “Our clients are aggrieved at what they see as the substantial prejudice caused by the affordable housing policies.”

It goes on: “The policy on careful analysis appears to amount to a form of specialist local tax, applicable only to student accommodation. “It seems to be an attempt without lawful justification to introduce a type of CIL (Community Infrastructure Levy) in a case where CIL is not applicable.”

The submission will go to the planning inspector, with the student accommodation charge part of the inquiry into the city’s Oxford Sites and Housing Plan.

Colin Cook, city council board member for city development, said: “They would say that, wouldn’t they?”

But he said the Town Hall was ready to address some of the universities’ concerns in advance of the inquiry.

Mr Cook feared that the universities had misread what he said was the true intention, which was to deter developers from building student accommodation instead of new family homes. But rather than making concessions, the council would seek to “tighten up the wording” in its planning document.

“We want to make sure that there is no perverse advantage in building student accommodation. “By changing the wording I think we can address some of their concerns.”

Mr Cook said developers may still have to pay extra money towards city infrastructure on top of the new charge, but it would depend on the specific site.

University spokesman Maria Coyle said: “A group of Oxford colleges has requested a dialogue with Oxford City Council about the Housing and Sites Plan. “Their submission concludes that the additional levy, otherwise known as the affordable housing contribution, is not consistent with the city council’s core strategy adopted in March 2011. They also argue that the levy is not set out in the core strategy, nor was there any debate on this matter during the core preparation process.”

In its submission, Brookes University questions whether council policies were “legally compliant” on grounds “that the impact on Oxford’s educational sector had not been considered”.