The London Borough of Enfield is progressing the Meridian Water development. The council has been active in assembling land for the scheme, which is intended to deliver up to 10,000 homes, a new rail station and employment uses over a 20-year build-out.
Outline planning permission was granted last year for the first 725 new homes and the new station.
Also last year, the council announced that it had selected housebuilder Barratt as its preferred development partner to help it deliver the scheme.
But in a statement yesterday, the council said that discussions with Barratt to enter into a development agreement had been "terminated".
The statement said the council had informed Barratt that the developer's proposed terms were "unacceptable, which has now led to discussions with them ending".
An Enfield Council spokesperson said that a recommendation was due to be presented to a Cabinet meeting next Monday that Barratt’s position as preferred development partner be terminated, but the firm took the decision to formally withdraw ahead of this meeting.
Details of which aspects of the proposed agreement caused the stumbling block have not been revealed, but the council said it considered Barratt’s offer "to be a poor deal for the residents and businesses of Enfield".
The council said that it would now consider its next steps. "We already own two-thirds of the developable site. We have housing zone funding from the Greater London Authority. We have achieved planning consent for the first 725 homes at Willoughby Lane and are managing the construction enabling works on-site," it said in a statement.
The council added that the decision would not affect the timetable for delivery of the new rail station or the first new employment sites at Meridian Water.
A spokesman for Barratt said: "Barratt London has a long and successful history developing large regeneration projects in the capital, but unfortunately we have been unable to agree terms on this particular scheme. We wish Enfield Council well in taking the project forward."