The future of a major regeneration project that would replace one of Sutton's most notorious eyesores has been thrown into doubt after the owners put the site up for sale.

The council declared "new homes for North Cheam" at the end of June when they granted planning permission to Surrey-based developers Stonegate Homes to demolish Victoria House and replace it with new homes and shops.

Your Local Guardian:

What Victoria House was expected to look like in the plans

The proposed new eight storey building including 75 flats was seen as vital to help the regeneration of the area, that was named one of the most under threat shopping centres in the UK in 2011.

However, it is now feared the site, which has stood empty since 2006, will be left to crumble for years to come after it was announced this week that the developer is putting it up for sale.

There are also fears about the effect delays in redeveloping the site will have on the area as a whole.

Your Local Guardian: Councillor Graham Whitham

Councillor Graham Whitham, the leader of Sutton’s conservatives and who sits on the development control committee, said:  "It means uncertainty will continue in the area. This won’t help the progress we are trying to make.

"A lot of these district centres are hanging by a thread. A blight on an area is not going to serve it well."

The council expressed its "disappointment" at the news, but would not be drawn on the long term significance of the sale, stating only that it could cause a "possible" delay to the development.

When approached by this newspaper Steve Curwen, the director of Stonegate Homes, declined to comment on the sale of the derelict site, that it is selling with planning permission for its development.

Your Local Guardian:

The building was decorated with artwork last year

At the end of last year attempts were made to try and dress-up the eyesore by decorating it with artwork - but the whole community was hoping it would be redeveloped as quickly as possible.

It had been rumoured Stonegate putting the site on the market came after a disagreement over how much wide investment in the community the developer would need to make as a condition of building the development, claims the council has denied.

Your Local Guardian: Richard Clifton

Councillor Richard Clifton, vice-chairman of Sutton’s housing, economy and business committee, said: "It is disappointing that it seems there is now going to be a delay while the future ownership of the building is resolved. But, whoever the owner, we are ready to continue working with them to turn this eyesore into a valuable part of the community."

Coun Whitham said he believed Victoria House could end up becoming another Sutherland House, in Sutton town centre, which has been derelict for years after being granted planning permission for a major housing development on multiple occasions, but with the projects never going ahead.

The council is currently involved in an expensive planning inquiry over the number of adffordable homes the current developer has proposed for the site.

He said: "It is a bit like President George Bush in Iraq and Afghanistan declaring victory too early.

"I was amazed the council was so happy to declare victory when I was concerned it could be a much longer campaign. It was very premature.

"Often you find this with developments - it shouldn’t come as a surprise when they do decide to sell it on."

Steve Eldridge, the chairman of the North Cheam Trader’s Association, said he had been sceptical about the development going ahead.

He said: "We are disappointed it is going up for sale but not wholly surprised - a lot of developers do now get planning permission and re-sell.

"The positive thing happening in North Cheam is that Coral has opened next to Barclays which means that along this part there are no empty shops at all."

Victoria House is one of the first buildings you see when entering the borough