Four clients who had reserved plots at the housebuilder’s 43-home development at Summerfield Avenue back in 2018 were informed over the weekend that their deposits were to be given back.

Confirming the decision to Scottish Construction Now, the company said it had hoped to absorb the extra costs but the “catastrophic situation” that 2020 has created made this impossible.

A spokesperson for InverTay Homes said: “Whilst we are not able to make comment on individual clients, we confirm that we have had to make the regrettable decision that four of our clients on our 43 house development in Dundee had to be given their deposits back. This is not a decision we have taken lightly and we are fully aware of the heartbreak this will have caused.”

The spokesperson added: “The homes are located in a particular area of the site which has come to light will require significant additional groundworks in which to construct. One of the homes may not even be possible to construct at all and this may also require us to make alterations to the site layout and planning at this location which affects all of the properties notified. We had hoped to be able to absorb this cost but the catastrophic situation that 2020 has created has added to our costs greatly.

“Over the past few weeks, we have been informed by almost every supplier that their costs are again to increase for materials at the end of the year and this has also been the case for our sub-contractors who in turn are now having to charge more for their services. The compounding effect is that we cannot construct the homes and sell them at a loss at a time when we have been taking all measures to protect our business and the jobs of our workforce.”

Acknowledging the unwelcome timing of the announcement, InverTay Homes said the impacted customers would receive priority on the homes should the properties be constructed.

The spokesperson added: “We will not know until we are into 2021 what we will be doing with these homes and once we have clarified the overall situation we would then give the existing clients first priority on the homes and although, agreeably, the timing so soon before Christmas will not be welcome, it was important to notify them as soon as possible. We fully understand the disappointment of the clients when receiving the notice.

“We are aware of the online posts that have now been made which has led to a tirade of online messages, some of which are far from factual. Sadly it appears that some of the clients connections have taken it upon themselves to send some pretty vitriolic and abusive direct messages which is far from helpful to us or our clients.

“It is an unfortunate situation and we had hoped to be able to find a way to ensure we can still provide a home to all of these clients as they have been very patiently waiting since reservation in 2018.”