A 'significant number' of homes will be demolished if a tunnel or bridge is built across the rail line in Bicester to replace a busy level crossing.

Transport bosses are looking at three schemes costing up to £65million to help alleviate traffic build-up on London Road as the line through Oxford, Bicester and London Marylebone gets busier.

But the latest update from Network Rail says that any option would mean a significant impact on the homes and businesses nearby.

The report, circulated to local councillors, states the 'cost of acquiring land for any option would be considerable, as it would involve loss of significant numbers of properties'.

It added that all options would also result in the loss of employment units.

At this stage the plans are not detailed enough to say which properties would be lost.

Oxfordshire County councillor for Bicester West Les Sibley said: "With all the development in the area and people heading in and out of the town centre it is putting the London Road level crossing under extreme pressure. We need to find the right solution to overcome that.

"The biggest fear is obviously the closure of the level crossing, and people cannot be left dangling about what’s to come in the future.

"Our argument is that you can’t cut off the town and we have to find a viable solution. The county councillors for Bicester centre have taken the view that doing nothing is not an option."

Concerns surround the length of time the London Road level crossing will be closed for once East West Rail opens its new line between Bicester, Milton Keynes and Bedford.

The latest Network Rail update said for the past two years, feasibility studies have been undertaken and three options remain on the table for either a tunnel or bridge.

County councillors for Bicester said the next step in finding a solution is a meeting with all stakeholders including Network Rail, the council and government officials planned for immediately after the county elections to discuss the latest options.

There are two tunnel options estimated to cost between £61m and £65m or a bridge option which would cost about £44m - the latest report adding that they are likely to be minimum costs.

The councillors added that they will be pushing for an option with a time frame to go out to public consultation, a time frame and nearby residents to be consulted on any plans as a priority.

County councillor for Bicester Town Michael Waine added: "Our main aim is to look to see the Government view on which option would be the favoured option and where the money is going to come from.

"Oxfordshire County Council holds no money for it at all and my personal view is if Government wants the massive increase in housing, which Cherwell is producing, they should be responsible for finding money for this.

"We demand to be given high priority and funding should not be an issue."

Much of the funding would need to come from the Government but county councillors for Bicester suggested the £100m figure put forward for turning Bicester into a 'Garden City' could help towards a solution.

Bicester North representative Lawrie Stratford said: "The big plus is Bicester is beginning to be recognised nationally, for example with the Graven Hill build, and the traction that is getting is great as well as with everything else going on.

"It might be a lot of money for us but nationally it is small change."

He added: "It is all moving forwards albeit very slowly."

Network Rail spokesman Simon Masters said: "Network Rail continues to work closely with Oxfordshire County Council to find a solution for the level crossing at London Road Bicester. All options are being considered, however no decision has been made."