A combined £42.4 million of housing zone funding has been revoked from Lewisham Council.

The Greater London Authority funding was billed to go towards “key components” for Catford and New Bermondsey, senior programme manager Gavin Plaskitt told councillors at a housing select committee.

New Bermondsey has lost £20 million, which includes £12million for a new overground station at Surrey Canal Road.

Catford was due to receive £22.4 million, £19.6 million in an affordable housing grant, £1.3 million for rail station arrival space and £1.5 million for flood alleviation.

Mr Plaskitt said key dates had been changed by London Mayor Sadiq Khan, which meant the council was not able to meet the January deadline.

He said: “The original allocation for housing zones was one of the last things the previous Mayor for London did before leaving office, and unlike previous allocations it had a very long timescale. The only timescale was utilising funding in a 10-year window.

“We had to be able to give with strong confidence details of how many homes, what tenant type and in which financial year, and for neither of those schemes were we able to offer guarantee.

“The new Mayor has thought for allocating money to support housing delivery, it was right to focus on things which have a more immediate impact.”

Mr Plaskitt said the loss was “challenging”, but the council would still have support from the GLA including an allocation of £10m to move the South Circular Road.

He said: “GLA has said you are an important place for us in terms of housing delivery.

“In February we learnt our request for £10 million to move South Circular has been awarded, subject to agreeing the funding terms. In essence, we can look forward to support from GLA.”

Councillor Alan Hall said there would be other opportunities to receive funding.