Political support for the South Oxhey Initiative fractured this week as the Three Rivers Conservatives withdrew their backing for the regeneration scheme.

The opposition group’s leader, Ralph Sangster, said the project was not viable for developers while the council stuck to its demand that almost half the planned new 450 homes had to be affordable and social.

The representative for Moor Park and Eastbury said that the council needed to "get a reality check" over its decision to plough ahead with the scheme after two housing associations had pulled out.

The ruling Liberal Democrats and opposition Labour group rejected the criticism and accused the Conservative group of wanting the whole scheme to be market-rate housing.

Councillor Sangster said: "We are seriously concerned at the trajectory of the proposals currently being considered. The Conservative Group do not support the proposals as they stand."

The initiative has experienced a number of setbacks since housing associations Thrive Homes and Catalyst Housing, both withdrew their support for the scheme during the last year.

Councillor Sangster added: "We’re short of social housing but all you’re going to do is stop developments happening.

"The only way we can make sure this goes ahead is if the council gets a reality check. If it doesn’t work financially it will not fly - not without substantial subsidies by the taxpayer."

The initiative was devised after 130 flats between Fairfield Avenue and Oxhey Drive were identified by the council as being beyond repair and in need of replacing.

Ann Shaw, the Liberal Democrat leader of Three Rivers District Council, said she still has faith in the project but that it would need to be slightly altered.

Councillor Shaw said: "We want to get a developer. We’re adjusting some of the expectations we had the first time.

"The Tories don’t seem to want to support it unless it’s totally all privatised, and they don’t support the social housing need."

The council expects an outline planning application for the regeneration of the precinct to be made early next year, with a developer being appointed late in 2014.

Councillor Shaw added: "We have enough faith in the project to adjust some of the parameters to make it work."

The Conservatives are calling for the project to be reassessed financially and a detailed budget drawn up before a new development partner is appointed.

Councillor Shaw said the council wants to do its best to "promote a better community hub" in South Oxhey, which includes better shopping facilities with both social and affordable housing.

She added: "We’re not prepared to abandon that because the Tories say so."

Labour leader, Stephen Cox, said: "The Conservatives have shown their true colours. Far from steadfastly supporting South Oxhey and the project as they previously claimed, they now rather resemble a wobbly blancmange."

The Hayling ward representative added: "The Tories don’t go much on affordable housing generally, they don’t like the 45 per cent target and this is an attempt to put the skids under this vital component part of the project. What local people tell me they need is the affordable housing on offer not less so they and their families can carry on living there."