The Enquirer understands that problems with foundations have been uncovered at one of its largest modular homes developments in Bristol.

Modules being lifted out of previously completed homes

The 185-home Bonnington Walk development was one of L&G Modular Homes’ flagship schemes but now dozens of completed homes are having to be entirely dismantled.

Nearly completed homes before work started to dismantle buildings to their foundations

Tenants who have been waiting for months to move in at the troubled project are now being told it will be next year before they can finally move into their homes.

Some of them are understood to have been offered sweetners of thousands of pounds so that they can keep their mortgage deals.

A spokeswoman for L&G said: “Through our quality assurance checks we identified problems with the foundations of the site at Bristol that need to be rectified.

“We are working closely with our consultants and the NHBC to rectify these issues as quickly as possible. In order to do this, we are removing existing modules, with new homes to be replaced on site after the foundations have been rectified.

“No homes will be handed over to customers which do not meet the NHBC’s quality checks. We have informed customers that it could take 6-12 months to resolve these issues and are committed to treating our customers fairly. Where there have been delays, we have offered them compensation, as well as the option of cancellation.”

In May L&G Modular Homes suddenly announced it was halting production at its timber-frame modular housing factory near Selby after amassing heavy losses reported to total around £170m at year-end 2021.

The majority of the 450-strong workforce at the plant near Shelby were laid off then and last month L&G Modular Homes chief executive Rosie Toogood left the business.

On top of heavy losses, modular units produced at the factory have also suffered from severe mould problems after being stored outside under tarpaulin. This impacted homes at a scheme in Selby and was a concern in Bristol.