The council will now retender the huge redevelopment scheme and has reassured enabling works contractors that it will press on with plans to deliver a new railway station and remediate land.

Barratt London was named as the preferred development partner 18 months ago and was due to sign off the development agreement in the Spring, ahead of making a start on the first homes early next year.

But Enfield Council confirmed that discussions with Barratt have been terminated because Barratt’s proposed terms amounted to a “poor deal” for residents.

20-year regeneration project to create 10,000 homes

An council spokesperson said: “Enfield Council can confirm that, if Barratt would not confirm its commitment to a number of key elements of its own bid by today at the very latest, then a recommendation was to be presented to a Cabinet meeting on Monday 30 October that its position as preferred development partner for Meridian Water be terminated.

“Ahead of this, Barratt has taken the decision to formally withdraw.

The spokesperson added: “Meridian Water remains one of the most exciting development opportunities anywhere in London but we were simply not prepared to sign up to what we considered to be a poor deal for the residents and businesses of Enfield.

“Enfield Council therefore informed Barratt that their proposed terms were unacceptable which has now led to discussions with them ending.

“We are immensely proud of the progress we have made at Meridian Water over the last 18 months as Enfield Council has taken direct control to ensure successful delivery.

“We already own two thirds of the developable site.  We have Housing Zone funding secured from the GLA.  We have achieved a planning consent for the first 725 homes at Willoughby Lane and are managing the construction enabling works on-site.

Phase 1 of Meridian Water consists of 725 homes, new station building, platforms and associated interchange

“We have developed our ‘Meridian Works’ proposition with Europe’s largest open workshop for makers, creators and artists opening in 2018.  And we have secured the delivery of a new rail station at Meridian Water which will open in 2019.

“With these fundamentals already in place we will now consider our next steps to secure at Meridian Water the delivery of high quality new homes, world-class public spaces and major new job opportunities for the people of Enfield and beyond.”

A spokesperson 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 taking the project forward”

The Council added that it would continue to work with partners from across the private sector and the decision would not impact the timetable for delivery of the new rail station nor the first new employment sites at Meridian Water.