Dozens of buyers have been left in a state of limbo after the developers of The Panorama in Ashford ordered the contract on 30 flats to be rescinded.

The apartments on level one of the Park Street development were contracted to a housing association who sold them on to a mix of single purchasers and couples.

The majority of the homes were affordable, with buyers owning a 75% stake, but some were sold at full value.

However, a stop date was placed on the contract for June this year, and once this passed, Dukelease – who started developing the town centre block in 2013 – pulled the contract.

In a letter sent to their clients, Merlion Housing Association, who held the contract for the 30 first floor properties, said: “It is with deepest regret that I have to inform you that Merlion have received a notice from the developers at Ashford to rescind the contract for the acquisition of the first floor units at The Panorama.”

"We are absolutely devastated to find ourselves in these circumstances" - Tony Radford Merlion Housing Association

It went on to say: “We are considering our legal position with Pitmans [who acted for Merlion on the acquisition of the first floor] and in the meantime we have informed the solicitors acting for the developer that we do not accept the termination notice.

“We are doing our best to put things right.”

The letter was sent by Tony Radford, director of Merlion Housing Association, which is based in Winchester.

He added: “I can tell you from a personal level that all at Merlion, including the agents, are absolutely devastated to find ourselves in these circumstances and more importantly, the effect this will have on you.”

One buyer affected is Randal Lilly, 64, who paid a deposit on one of the flats in September 2013.

Delays on the construction saw Mr Lilly, who is disabled, live in a shed at his Willesborough allotment on and off since then, as all his money was tied up in the apartment.

On hearing the news the contracts have now been rescinded he said: “I’m disappointed. I don’t really know what to do. I have no more money.

“All I can do it wait and see if it is resolved. I will lose around £500 otherwise from fees and solicitors bills.”

Another buyer, a woman in her 20s, who placed a deposit on a first floor flat in October 2013, said: “It is a nightmare.

“I was buying on level one but had an email from Merlion to say Dukelease have rescinded the contract.

“We’ve been given no reason.

“Legally, we can’t do anything. The long stop date has been and gone.

“The housing association are not at fault and the estate agents have been great.”

The woman, who did not want to be named, has been told she will get her money back.

She added: “I reserved my flat in October 2013, and was told it would be a long wait. Originally we were told July 2014.

“I feel like it has got to a point now where I either laugh or cry. It’s like a joke."