THE collapse of a North-East building firm has left dozens of families facing an uncertain future over their new housing association homes.

Bennison Developments Ltd, from Birtley, has called a meeting of creditors next week to discuss putting the company into voluntary liquidation.

The firm, which was turning over £5m a year, employed 27 full-time staff.

Respected in the region as a long-established family company, it was taken over 18 months ago in a management buy-in. The last published accounts at the end of March 1999 reported a loss of £48,243, compared with a £29,041 profit the previous year.

Work stopped earlier this month at two of Bennison's sites at the Crofts, in Wolsingham and Westfield, in Frosterley, both in Weardale, where they were building houses and bungalows for the Three Rivers Housing Association.

Mother-of-three Michaela Shorrocks, 30, who is visually impaired, had earlier been told she could move into a new three-bedroom house at the Crofts next month.

She said she was devastated by the delay, adding: "I only heard about it by accident through someone talking in the street. I have had no letter from anyone officially"

Michaela said she had found it hard to explain to her two eldest children, aged ten and nine, that their new home would not be ready.

She has been living in cramped conditions in Wolsingham with her boyfriend Stephen Johnson, his parents and his brother for several months.

"When I was told last year I had one of the new houses it was like a dream come true.

"I am so angry nobody has bothered to tell us officially what has happened."

Martin Nurse, the association's chief executive, said: "We are in a very difficult position. Negotiations are taking place and we are taking all necessary action which is in the best interest of ourselves and our tenants.

Wolsingham councillor Vere Shuttleworth said: "There is concern in both villages about what's going on. Nobody knows how long the delay will be."

The creditors' meeting is at the Gosforth offices of accountants Tait Walker next Tuesday