Ruskin College has abandoned plans to move to the old Unipart site in north Oxford after the collapse of its controversial partnership with Berkeley Homes.

The scheme to uproot the college from its historic homes in Walton Street and Old Headington to fund a multi-million pound relocation to a new three-storey building sparked widespread protest.

Ruskin students and lecturer groups warned that the former factory site was contaminated and claimed the partnership with Berkeley Homes amounted to a betrayal of the college's inheritance.

But Ruskin principal, Jim Durcan, said the late U-turn had come about entirely because of "financial problems" and was nothing to do with health concerns.

He said: "We appear to be unable to reach an agreement. Our price and their price did not match. Everyone concerned is disappointed at this late stage and I cannot see this being put back together."

Mr Durcan said the college was ready to restart its search for a new site, funded by the sale of its valuable present sites. He said: "The college's executive remains committed to moving the college to a single site with new accommodation. The decision to uproot the college was taken only after serious consideration. We will be searching for a suitable site within the city."

Ruskin students immediately passed a motion of no-confidence and demanded the resignation of the college's senior management team.