The dispute is the latest problem to hit the £38m St Paul’s Tower in the city centre which was finally completed by Shepherd Construction last Autumn nearly two years late.

Residents are now taking action against developer City Lofts after discovering dramatic drops in the value of their flats.

The Yorkshire Post said one couple who bought a penthouse apartment for £337,000 have now had an independent valuation of £160,000.

The 32-storey block was first marketed in 2006 but suffered delays when it ran out of cash during the credit crunch.

Problems also arose when the work finally restarted and the developer decided to change the type of cladding on the building.

A City Lofts spokesman said the vast majority of buyers had been more than happy with their apartments and the quality of the building and design.

He said: “People who bought prior to the financial crisis have sadly, like many other individuals and companies across the country, seen a fall in previous values.

“But St Paul’s is an iconic landmark. It is attracting significant interest from people who recognise that it offers excellent potential for future growth.”