Confusion reigned over the future of the Olympics' village today after last night's shock resignations of the UK chairman and deputy chairman of Lend Lease, the Australian giant which won the tender to build the village.

Nigel Hugill and Robin Butler were behind Lend Lease's massive expansion in the UK since taking control in 2005.

Last month Lend Lease warned the Australian stock exchange that UK housing troubles meant its full-year profits after tax would fall by 47 per cent in the year to June 2008. It said it expected a further decline of up to 15 per cent in the financial year to June 2009. It recently pulled out of major development commitments in Stockport and Canning Town.

Lend Lease said Mr Hugill will leave in December and not be replaced. He was personally overseeing Lend Lease's work on the 2012 Olympics Village in Stratford. The project hit difficulties when Lend Lease admitted in June that it could not raise the £450 million from the private sector which it promised to do when bidding for the village.
It also said the £1 billion athletes' village' had shrunk from 4,500 to 3,300 flats — but with no reductions in cost.

The Olympics Delivery Authority (ODA), whose chief executive David Higgins was Lend Lease CEO until five years ago, last week said it could stay in charge of the project on a fee-earning basis, without risks. Doubts have been cast on the legality of this move.

Some industry analysts believe the ODA will try to recoup the money Lend Lease failed to raise privately from the Olympics contingency budget, or from London's affordable homes budget.