A NEW scheme to build more starter homes in Oxford has been angrily dismissed as a “get-out clause” for house builders.

Changes in planning rules, announced yesterday, mean construction firms will no longer have to offer low-cost rented homes in new developments.

Instead they will be able to sell the properties at a 20 per cent discount to first-time buyers under 40.

Prices will be capped at £250,000 and buyers will not be allowed to sell them until five years later.

But the plans were met with anger by some Oxford residents and housing experts, who said it would lead to fewer affordable homes to rent and higher prices in the longer term.

Bob Colenutt, of campaign group Affordable Oxford, said: “This is a charter for house builders which provides a get-out clause.”

Current planning guidelines mean half the homes in Oxford city developments must be affordable housing and available to rent at a lower cost than the private sector.

But the shake-up by David Cameron, described as a “dramatic shift in housing policy”, means builders will not have to follow these guidelines.

Former town planner and housing expert Mr Colenutt claimed the policy was “an attack on local communities.”

He added: “This isn’t about helping people, it’s about helping the house builders.”

Oxford City Council leader Bob Price said: “This policy might be welcomed by the very few people who are both eligible and can afford it, but in Oxford it will mean fewer homes for affordable rent.”

During the past 10 years, private developers built 873 affordable homes in Oxford, of which 616 were for social rent. Another 536 rented properties were built by other organisations and the council.

Mr Cameron told the Conservative Party Conference yesterday he wanted to transform “generation rent” into “generation buy”.

City council deputy leader Ed Turner, said: “Rather than having lower cost properties to rent, we will get many more properties to buy for a quarter of a million pounds.”

Mr Turner, Labour councillor for Rose Hill and Iffley, warned someone on the city’s average wage of £30,600 would not be able to afford one of the £250,000 starter homes.

Dr Sue Brownill, reader in urban policy and governance at Oxford Brookes University, said: “There are a lot of low income jobs in Oxford and the hospitals and university depend on auxillaries, cleaners and administrative staff, but where will they live?”