A development company specialising in building tower blocks has pulled out of plans for Walthamstow Town Square.

In a victory for campaigners, development company Mount Anvil has severed ties with Capital & Regional, the company contracted by Waltham Forest Council to complete the redesign of the area.

But Mount Anvil has not responded to queries and Capital & Regional are denying the partnership is over, despite a letter from a council representative seen by the Guardian stating otherwise.

Waltham Forest Council granted Capital & Regional full planning permission at a planning committee meeting on December 13, 2017 to build residential tower blocks and redesign the space that is now the town square.

As part of the plans, C&R joined forces with Mount Anvil and Killian Hurley, chief executive at Mount Anvil, spoke at the December 2017 planning meeting.

Isai Priya, a member of the campaign group fighting the development Save Our Square, criticised the plans for the town square.

She said: “This so-called model has driven 50,000 working class people out of London. People like me cannot afford high rents, let alone buy anything.

“The council should build homes at social rents, and stop private outfits building luxury flats to line its own pockets.”

A spokesman for the campaign added: “Good riddance to Mount Anvil, we will ensure any other builder who steps in will meet the same determined opposition.

“We have been campaigning for three years gathering massive support along the way. We are definitely not stopping now.”

Cllr Simon Miller, Waltham Forest Council’s cabinet member for economic growth and high streets, confirmed that C&R’s search for a long-term development partner was “ongoing”.

He said: “Waltham Forest Council and Capital & Regional are committed to delivering this transformational project for the town centre.

“As part of that, it is up to C&R to find the best long term development partner and that process is on-going.”

A spokesman for Capital & Regional denied that the company's partnership with Mount Anvil was over, but a letter from a Waltham Forest Council representative seen by the Guardian states otherwise.

The C&R spokesman said: "Having received full planning permission and with the support of Waltham Forest Council, we remain committed to the redevelopment of Walthamstow town centre.

"Our relationship with Mount Anvil remains unchanged as we look to progress the £200 million scheme to create an enhanced retail and leisure offer, new community facilities and much-needed homes for the local area.”

Mount Anvil refused to comment on the issue.