The £100 million riverside development, close to the city’s train station, would have featured a 120m skyscraper –dubbed Providence tower -and six smaller blocks, housing 800 new flats.
Work on the project next to the River Aire was expected to start six months ago but the developer confirmed it had postponed construction and would only review the future of the scheme again in the Spring.
A spokesman for George Wimpey said: ‘The project has been postponed due to uncertain market conditions in Leeds City Centre.
He insisted: ‘It is the wrong time for this scheme in the current Leeds micro-climate for hi-rise apartments.’
However others feel the suspension of Assael’s RIBA competition-winning scheme is sign of the growing fear over the possible impact of the US credit crunch.
Practice chief John Assael, thinks the decision was based on wider economic concerns. He said: ‘There is a general uncertainty in the markets at the moment – this is more to do with the bigger picture.
‘We are very disappointed the project has been put on hold but I’m sure Wimpey will develop the site soon.’
Huge Assael scheme mothballed in Leeds