A SCHEME to build student homes on stilts above an Oxford car park has been approved.

Oxford City Council’s executive board discussed the future of the open air car park off St Clement’s Street, near Magdalen Bridge, on Wednesday.

The council had invited bids from developers to build more than 120 student rooms above the car park, and the board decided to grant the Watkin Jones Group a 150-year lease on the site.

Under the deal the number of car parking spaces will be reduced from 100 to 76.

New public toilets will be built and the council will lease back the car park at a peppercorn rent.

Construction is likely to take up to a year, and the accommodation is expected to open in 2011.

In a report to the executive board, Steve Sprason, head of property and facilities management, said: “Officers are currently exploring what opportunities may exist for the provision of temporary car parking.

“In the worst scenario, there will potentially be a lack of parking capacity during the development period, if temporary provision cannot be identified at a reasonable cost.”

The car park is expected to generate £275,000 in income for the council this year. City council leader Bob Price said: “The accommodation would effectively be built on stilts above the car park. It is part of our policy of trying to use city council owned space more wisely.”

A similar plan, still in its early stages, is being considered at the Diamond Place car park in Summertown.

The St Clements scheme has angered residents’ groups, who say the area has already seen a huge increase in applications for student accommodation.

Susan Lake, chairman of the Headington Hill Residents’ Association, branded the idea “outrageous”.

Ms Lake, whose group is fighting Oxford Brookes University’s £150m development plan for its main Gipsy Lane campus, said: “Our fear is that once the council wants to do something with a piece of land, it gets together with developers and it becomes very difficult for residents to fight their case.”