London mayor Ken Livingstone has warned Bellway Homes that its proposals to stagger the construction of the Thames Gateway's largest single housing development could undermine the regeneration of the area.

A report presented to the mayor's latest planning meeting said Bellway and English Partnerships, its joint venture partner, had proposed a cap of 4,000 units on its Barking Riverside scheme until funding has been secured for a £295m extension of the Docklands Light Railway through the site. The joint venture envisages 10,800 homes spread across the 179ha brownfield site.

The Greater London Authority expressed concern that phasing construction would not lead to the number of residents needed to support a DLR service and that a delay to public transport improvements would overload the congested highway network.

The report says: “Although there will be minor highway improvements and bus/East London Transit services, there is a risk that the 4,000 units could be built without significant improvement to capacity.”

The report says the proposal that half of the affordable housing should be shared ownership is unacceptable. Barking council is due to decide on whether to grant approval for the scheme this month.