Key staff homeless for a year

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Around 40 people, including nurses, firemen and teachers, exchanged contracts on properties in a shared-equity housing scheme in Timber Wharf, Hackney at the start of last year.

But, after a series of construction delays, they have had to watch their almost-completed homes stand empty while they camp with friends and relatives or live in temporary accommodation.

They have been given no indication when they might move in but they cannot withdraw from their contracts for fear of being sued for 10 per cent of the final costs of construction.

Ruth Sandler, 28, a teacher from Islington Green, paid a £250 deposit for a 40 per cent stake in a two-bedroom flat in February last year.

"I was told the property would be ready to move into by May 2007 at the latest," she said. "I was very excited about owning a home. I started preparing for the move and even bought a leather sofa."

A year on, she is living with her mother while her belongings - including the sofa - are in storage.

She said: "I'm enraged. I still don't have a completion date. I have a number of letters from One Housing Group giving me anticipated finishing dates but none have come to pass. It has caused me and all the others an enormous amount of misery." According to One Housing Group, which owns the development, the delays are the result of work defects that have not been resolved by the contractor and the failure of EDF Energy to connect the power supply.

A spokeswoman said: "We recognise this is unacceptable but the problem is beyond our control. This is a well designed development. Once the admittedly serious problems have been resolved we expect them to be desirable homes for years to come."