A regeneration project has been refused permission due to the loss of social housing.

The Mayor of London, Sadiq Khan, refused permission for the application to redevelop Grahame Park estate in Colindale, which he said included plans to demolish 692 social homes and replace them with just 435.

The scheme was also refused permission because it failed to provide a minimum of £84,000 to invest in additional bus capacity and alternatives to car use.

Barnet Council approved the application, but forward by Genesis Housing Association, in November, but due to Mayor Khan's intervention, they must now continue to work with City Hall planners and the association to redesign the scheme.

Mayor Khan said: "This is a classic example of how not to do estate regeneration. I fully support improving social housing on this estate and across the capital, but this scheme falls far short of what I expect of London boroughs.

"Londoners so urgently need more high-quality housing, not less, which makes this scheme completely unacceptable in its current form.

"I have asked Barnet Council to work constructively with the applicant on alternative plans with greater density, which do not result in the net loss of affordable homes. Given its recent record in this area, I hope the council recognises the need to replace what would be lost at Grahame Park."

He added in his new London Plan, which is currently being consulted on, estate regeneration projects must replace homes which are based on social rent levels on a like-for-like basis.

Leader of the Council Cllr Richard Cornelius said they are considering how to respond to the Mayor's choice to "trample" on local democracy.

He said: "It’s disappointing Mayor Khan has decided to trample over local democracy again, particularly as this development is being led by a housing association, and was designed to create a socially mixed environment.

"Mayor Khan, on the other hand, seems to want to create the sink estates of tomorrow by continuing to concentrate social tenants in one place. This is the wrong approach and we will be considering how to respond."

Both Barnet Council and Genesis Housing Association expressed their disappointment at the application's refusal, saying they are in close dialogue with one another and the Mayor's office to agree the next steps.

The Barnet Labour group have welcomed the Mayor's intervention, saying they believe the loss of social rented homes is "unacceptable".

Barnet Labour's housing spokesperson and deputy leader, Cllr Ross Houston said: "We completely support the Mayor's policy of like-for-like replacement of homes on estate regeneration, but in Barnet this is not happening and he is right to intervene.

"The Conservative-run council is just not getting a good enough deal for Barnet residents from the significant amount of development taking place in the borough, and that needs to change."

He added that Mayor Khan is "effectively protecting £51million of public assets", as he believes each social rented home on the estate is a public asset worth £200,000.