The collapse of Urban Splash’s modular housing joint venture was caused by losses piling up due to the under-use of its factory, exacerbated by design problems which resulted in defects in the homes it produced.

A report by the administrators of the Urban Splash House group of companies which collapsed into administration in May with debts of more than £20m, said the problems were compounded as key customers lost confidence in the firm, meaning it was unable to secure new work.

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