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The chairman of Weston Homes has blasted the government after a scheme that would have seen up to 750 flats built in Rainham, Essex, had to be abandoned when the social landlord left the housebuilder to shoulder the bill for social housing costs.

In an open letter to the council, Bob Weston said that the scheme, which was due to comprise 25% social housing, was axed after the social landlord pulled funding for 180 homes.

鈥淚 have just had to abandon a major scheme that would have provided over 750 new homes in an area that sorely needs them as the amount of money the social landlord鈥檚 were initially able to pay for more than 180 homes was drastically cut.

鈥淏ut by cutting funding that enables social landlords to pay for the affordable homes private developers are willing to build - which are sold to them way below market value as it is - the government has prevented the scheme it actually approved from going ahead.鈥�

Weston also lambasted the government for the criteria surrounding affordable housing schemes in the UK, stating that funding is not being spent on the poorest households. 鈥淥ne social landlord has been boasting that anyone earning up to 拢60,000 can qualify for its housing,鈥� he said.

News that the scheme was to be abandoned was welcomed by Rainham council and the local MP, both of whom had opposed the plans.

Jon Cruddas, MP for Dagenham and Rainham, said: 鈥淚 am not surprised as housebuilding starts are at record lows and government cutbacks have reduced incentives.

鈥淸But] every Rainham resident will welcome this. The local area could not have handled the extra pressures on school places, the NHS, transport and police.鈥�

Dick Mortimer from Family Mosiac, one of the social landlord鈥檚 working with Weston on Dovers Corner said that the project relied on a funding system which wasn鈥檛 available in current economic circumstances. 鈥淲hat was viable in 2008 simply isn鈥檛 viable now,鈥� He said. 鈥淒overs Corner was modelled on a financial system which simply doesn鈥檛 exist anymore.鈥�