A housing development is expected to cost a council almost £3 million more after a contractor went bust.

Adur District Council said its project to build 49 new council homes at Albion Street in Southwick is moving forward at speed but it is facing paying out an extra £2.8 million in building costs and repairs.

In September, contractor Westridge Construction went into administration as the development neared the final stages.

The council brought in an independent surveyor to assess the site.

They identified remedial works and said there was still “substantial” work required to complete the build.

The council said the deterioration of the building due to leaks and the spread of condensation while the buildings have been vacant have exacerbated the situation.

Sussex-based Cheesmur Building Contractors have been brought in following Westridge’s collapse, to finish the job.

A total of 25 one-bedroom and 24 two-bedroom flats are being built, all of which will go to people on the council’s housing list.

A council spokesman said: “As Westridge is no longer trading, we can't seek compensation for these issues. The significant rise in building costs and interest rates, plus the repair work, since we signed the original contract has led to additional costs of around £2.8 million for the council, although we hope to recover £1m of that figure from insurance we had taken out.

“Despite these setbacks, we remain dedicated to completing the project because these homes are crucial for our community.

“The new development will provide 25 one-bedroom flats and 24 two-bedroom flats, which will all be allocated to Adur residents on our housing waiting list.

“With over 900 households on Adur’s housing register, including 70 currently housed outside the district, these new homes will bring families back to our area, closer to their jobs, schools and loved ones.”