Westridge Construction went under in September 2023 while building a new seafront council housing development in Southwick, West Sussex.

For the last two years replacement firm Cheesmur Building Contractors has been attempting to rectify construction issues on the 49-home site.

Client Adur & Worthing Councils has now confirmed the remediation work will cost more than £3m to fix while they remain still unoccupied.

The council said “further significant issues with the building have been discovered relating to its weatherproofing and design.”

Problems that have been discovered include design features that funnel rainwater into the flats, faulty damp course systems that have been installed and poorly chosen materials, which are allowing excessive levels of moisture into the building during bad weather.

Councillor Jeremy Gardner, the leader of Adur District Council, said: “I am appalled that tenants are not able to move into these homes because of shoddy construction work and poor building design.

“Investigations into water penetration in these flats are uncovering more and more issues. I want those problems rectified as soon as possible so Adur families in need of somewhere to live can move into these new homes.”

A report outlining potential plans to resolve the problems will be discussed by the council next month.