Insurance giant L&G is being forced to dismantle homes built during its short loss-making foray into manufacturing modular housing.

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

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.

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.

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 suffering from severe mould problems after being stored outside under tarpaulin. This impacted homes at a scheme in Selby and was a concern in Bristol.

L&G Modular has been contacted for comment.