More than 100 craftsmen have been left unpaid and numerous sub-contracting firms are facing an uncertain future after construction abruptly stopped on a major housing development.

Work on the 110-home scheme at Capstone Green in Chatham was halted in July with "no reason" given to builders from the landlord London and Quadrant (L&Q), a government-backed housing giant.

The site, previously owned by Southern Water, has been fenced off and padlocked with security guards on patrol.

Many of the properties are nearly complete, with tenants waiting to move in.

A multi-million pound dispute between L&Q and the builders Brooke Homes is at the heart of a problem which may have to be settled in court.

Brooke Homes specialises in pre-constructed buildings manufactured at a factory in Ashford where many Medway workers are employed.

Senior management staff at the London-based firm told KentOnline's sister paper the Medway Messenger that unless the matter is settled, the company “could well go under”.

A spokesman said: “We are owed at least £5 million and we need that money to pay people at the factory and on site.”

Meanwhile, a spokesman for charitable housing association L&Q confirmed the site had been secured while it undertakes the necessary survey and pre-commencement works.

Development works will re-commence next year.

He said: “We have been informed by our legal advisers that due to the on-going negotiations between BH and L&Q in respect of a final account, it would be inappropriate for us to answer the questions you have put to us at this stage, as our answers may prejudice these negotiations.”

The first 13 families moved on to the estate bordering Luton Recreation Ground in January.

The scheme, which offers shared ownership and affordable housing, was due to be finished early next year.

Groundworks Solutions Limited (GSL) was awarded a £2.2 million contract to provide infrastucture, landscaping, foundation and drainage works.

Les Finn, who works at GSL, confirmed the company was pursuing through the courts “a six figure sum” owed to them.

He added: “We managed to pay our employees, but at the end of the day we are out of pocket.”

Notice to quit was served on June 4 with 28 days to vacate the site.

Bosses from BH say they have met Medway Council officers with a view to building a factory in the area to build their modular homes.

The project would have created scores of jobs, but again it would be reliant on finances being available.

Medway Council has not commented.