Developers have agreed a lucrative contract with the council for the regeneration scheme in South Oxhey.

Countryside Properties and Home Group have signed a contract which means they will complete the South Oxhey Initiative.

The scheme is valued at £120-150 million.

Ann Shaw, Leader of the Council said: “The Council is very pleased to have formally entered into contract with Countryside and Home Group.

"We are very much looking forward to working in collaboration to deliver the new high quality homes and shops that South Oxhey needs.”

Senior Liberal Democrats at Three Rivers District Council said they wanted 45 per cent of the 514 homes created in the South Oxhey Initiative to be affordable, but the Watford Observer revealed there will be just 96.

Sources have indicated Three Rivers District Council will make £3.2 million from the scheme.

Richard Cherry, Chief Executive of Countryside’s Partnerships division said: “We are pleased to be officially on board and working with Three Rivers District Council to progress our proposals.

“We have a vision to create an integrated and well-designed new neighbourhood with high quality housing for South Oxhey and we will do that in close partnership with the local community. The initial works are due to commence later in 2016, subject to planning.”

Mark Henderson, Home Group chief executive, said: “It is great that the plans for South Oxhey are moving ahead and that we have forged a partnership focused on creating lasting change for the better for this community.

“Better standards of housing are desperately needed for local people and our plans will deliver that for hundreds of families.”