The dispute centres on 38 affordable homes in Block B of the scheme, originally earmarked for a housing association partner.

Despite marketing to more than 30 registered providers, no buyer came forward.

The only offer — from neighbouring Brent Council — was rejected by Barnet Council in January due to Section 106 conflicts.

Chase said it struck a payment-in-lieu deal with Barnet on 26 August, which allows funds to be pooled for affordable housing delivery elsewhere. But it said the council has failed to act since, leaving the project stuck in limbo.

With Government considering penalties for developers who delay building, Chase is calling for equal accountability for local authorities whose inaction slows down housing delivery.

Managing director Gary Barton warned the deadlock is part of a wider trend of registered providers shunning affordable housing allocations, and urged ministers to hold local authorities to account for delays in housing delivery.

He said: “We have taken every proactive step to deliver this development, yet Barnet Council’s constant inaction and procrastination stance is stalling progress at a time when London and the UK in general, desperately needs new homes.

“Government has been clear about removing blockers and cutting through the unnecessary delays that Council’s continuingly find themselves in and speeding up housing delivery, but in this case, the local authority is the sole blocker.

“We urgently need MHCLG’s support to unlock this site to ensure that the delivery of these homes are not delayed any further.”

The Claremont Quarter project, part of the wider Brent Cross Town regeneration area, will transform the former PB Donoghue site into a residential community of one-to-three bedroom flats.