Approval has been granted for up to 4,184 new homes on the site, but in its annual report released in May this year, British Land said it had sold just 57 apartments.
It also admitted that challenging market conditions, difficulties with leases and sales, as well as changes to the development had caused the project’s valuation to fall by 6.9pc in the last financial year.
British Land jointly funds the development alongside pension fund AustralianSuper. Both companies have been contacted for comment.
The decision brings one of London’s largest regeneration projects to a halt, at a time when London is on course to build just 20pc of the Government’s annual homes target of 88,000, according to figures from Molior.
In recent months, a succession of property developers has warned that London is becoming increasingly unviable for new house-building projects.
Landsec shelved a £1.5bn plan this week to rebuild a shopping centre and create 1,700 new homes in Lewisham, south-east London, after the borough’s Green-led council demanded more affordable housing.
Jennie Daly, the boss of housebuilder Taylor Wimpey, also said this month that building in the capital was “fundamentally broken”, and that the incentive to take on risky projects had “evaporated”.