Had this been known, the association say they would not have paid so much for the homes.

The association issued court proceedings, and after lengthy out of court discussions, it was today revealed the council had agreed to pay Orbit £3.6 million.

This settlement includes Orbit’s legal fees. The council’s own legal fees amounted to around £550,000, meaning in total, the council has spent over £4.1 million.

A council spokesperson said: “Provision for this settlement and the council’s fees has been provided for and therefore will not have an adverse impact on the council’s spending plans.”