Havering cabinet members rubber-stamped plans for the council to take over a major regeneration scheme after a development partner pulled out.

The future of a promised station in Beam Park, needed to unlock permission for thousands of new homes to be built on the former Ford factory site, is uncertain due to a dispute over who will pay for its operation.

It has emerged that the uncertainty has caused housing association Notting Hill Genesis to pull out of a joint venture with Havering Council to build up to 1,000 homes along New Road, next to the former factory site.

Their vision was to transform the dual carriageway into a 2km long “linear park” with enhanced pedestrian routes, cycling lanes and a smaller road lined with blocks of new-build flats.

Since 2017, when the joint venture was approved, the council and Notting Hill Genesis have spent an unknown sum of money buying plots of land through negotiations and compulsory purchase orders.

At a cabinet meeting last month, lead member for planning and regeneration Graham Williamson said buying Notting Hill Genesis’ half of the venture would allow for “future opportunities to come forward” if the railway station is ever built.

He added that rental income from the properties bought through the joint venture will provide an income to cover the interest on the amount it has borrowed until the land can be used for “bigger regeneration projects” in the future.

Speaking at the meeting, Conservative David Taylor said: “I’m confident that you’re making the right decision here.

“And I think it’s very prudent. As you say, it’s not going to be a loss leader.”

Although the council has not published the amount it will spend on buying the housing association’s stake, its annual budget earlier in February this year showed that it set aside £47million for regenerating Beam Park.

Companies House accounts for the joint venture say that as of March last year each partner had contributed £2.1m.

In total, the council has borrowed about £315m to fund building and regeneration projects, an amount which is forecast to increase to £665m by 2025/26.