L&G blames problems with foundations as it is forced to dismantle and replace modular homes
L&G has admitted it has had to dismantle new homes built during its failed venture into modular house building, claiming problems with their foundations had been discovered.
An Inside Housing investigation revealed last month that the insurance company is having to entirely dismantle dozens of properties at its 185-home Bonnington Walk development in Bristol.
GreenSquareAccord, a housing association partner involved with Bonnington, said the modular scheme suffered from a “long list of technical issues”. Sources told Inside Housing that bolts tying modules to the ground and to each other were missing and foundations were set inaccurately.
An L&G spokesperson 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 [National House Building Council] to rectify these issues as quickly as possible.
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“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 that do not meet the NHBC’s quality checks. We have informed customers that it could take six to 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.”
Tenants who have been waiting for months to move in at the site are now being told it will be next year before they can finally move into their homes, Construction Enquirer reported.
Inside Housing understands that there are 11 such remaining reservations and affected customers outstanding; some of the customers have been offered compensation worth thousands of pounds so that they can keep their mortgage deals.
L&G said in May it was halting production at its timber-frame modular housing factory near Selby, after the business amassed losses approaching £200m.
Most of the 450-strong workforce at Selby were laid off and L&G Modular chief executive Rosie Toogood left the business last month.
Inside Housing also revealed last month that modular units produced at the factory suffered from severe mould problems after being stored outside under tarpaulins. This affected homes at a scheme in Portholme, Selby, and was a concern in Bristol.
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