First Endeavour LLP had been operating construction work on the sites in Lochore, Lumphinnans, Dunfermline and Kirkcaldy before work halted in December 2023.

From today, Fife Council said it has “regrettably”  terminated contracts and has secured control of the sites.

Housing spokesperson Cllr Judy Hamilton said: “This is a very unfortunate situation for all involved and not the outcome we would have hoped for. Contracts will be dealt with through the council’s procedure and, moving forward, we need to ensure that these much-needed new council houses can be built and allocated with the minimum of delays.”

Work to build 97 homes on Lochgelly Road in Lumphinnans is affected, while a site in New Flockhouse in Lochore is planned for 51 properties.

45 properties are to be built on the site of the former Bellyeoman depot in Dunfermline and ten properties are to be built on Fair Isle Road in Kirkcaldy.

In December, First Endeavour was forced to apologise after “mistakenly” issuing redundancy notices to employees working at the sites.

In its letter, the Dunfermline company claimed it had not received a payment from Fife Council so that jobs had been terminated “with immediate effect”.

The letter, sent by First Endeavour group development director James Methven, said: “I am extremely disappointed and frustrated to have to write to you and inform you that we are not being paid by Fife Council until after the Christmas break.

“That leaves First Endeavour LLP in a position where we are unable to pay any wages prior to Christmas.

“We are now forced to make everyone redundant with immediate effect.”

Fife Council refuted the claims before the company then said it had sent the letters in error.

Mr Methven told The Courier at the time that the redundancy notices had been mistakenly sent out due to an “administrative error”.

Work on the First Endeavour building sites in Fife was expected to resume after the Christmas break.

Fife Council said it will move on to the next stage of working with construction partners to complete the build of the new houses.