Mystery surrounds Hopkins Homes' decision to scrap building the first phase of 4,000 homes in West Winch.

The housing company gained outline planning permission to construct 1,100 properties last year but it now it says it will no longer go ahead with the scheme.

However, bosses have not said why the developer has pulled out.

The move has caused concern, with the firm investing significant funds and spending more than 10 years developing the proposals.

But both West Norfolk Council (WNC) and the land agent have downplayed any risk to the project, with talks already under way to find another partner for the scheme.

Thousands of homes could be built in West Winch (Image: Chris Bishop)

The West Winch housing project is a key part of WNC's target of building nearly 10,000 homes in the district over the next 30 years.

The project also faced difficulties last year due to complications with signing agreements with landowners and agreeing Section 106 monies - the amount it will contribute to support improvements to local services.

Simon Nash, independent councillor for West Winch, believes the decision could be a sign of a wider financial downturn, with house builders struggling to make projects viable in challenging economic circumstances.

He said: "There was still a lot of work to do before spades were put in the ground.

"Big building companies like Hopkins Homes treat houses as just another commodity. If it is not going to make money, they are not going to build them."

But the council and the agent for the landowners, Savills, do not think the decision will hamper progress with building the homes.

A WNC spokeswoman said: "Changes of developer are relatively common in the development industry and do not necessarily have any impact on progress. The planning permission sits with the land and can be picked up by another developer.”

Andy Redman, development team director at Savills, who is acting on behalf of one of the major landowners involved in the project, said: “Hopkins are no longer involved in the development at West Winch. The landowners are currently in the process of selecting a partner to take on the process and will be happy to confirm progress once matters have been formalised.”

What the West Winch access road could look like (Image: Norfolk County Council)

Alexandra Kemp, part of the Progressive Independent group at WNC, hoped whoever takes on the project will support investing in services needed to support the growing population.

She said: "We need a responsible developer to come forward who will put the infrastructure that is needed in place."

A new school, a new road and safe places to cross are all needed in the village, Ms Kemp added.

Norfolk County Council has confirmed its plans to build a £122m road linking the A47 and A10, which is connected to the housing project, will not be affected by Hopkins Homes pulling out of the scheme.

The new road has also proved complicated, as two major gas mains will have to be moved to construct the road, which will cost £24.5m.

Homes England has agreed to provide additional funding to cover the majority of the increase.

Hopkins Homes has been approached for comment.

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