Gazeley has delayed plans for its 4m sq ft Magna Park distribution scheme near Cambridge after a housebuilder halted the development of a local bypass.

The shed developer has had to halt progress on its £500m speculative scheme after Persimmon stopped work on the Stanground bypass that Gazeley said was crucial to the development.

Gazeley has put back the submission of its planning application for seven rail-linked warehouses on 334 acres in Stanground until the middle of next year.

Don Morgan, development director at Gazeley, said delays were also caused by problems compiling environmental data for the scheme.

He said: ‘Our original timetable has now slipped and, at the current time, I cannot offer certainty as to the revised submission date. However, my feeling is that this may be in the middle of 2009.’

Persimmon started work on the road in March as part of a plan to build 1,525 homes in the area, but put the development on hold due to market conditions.

The housebuilder said that it was still committed to delivering the scheme.