The construction of 20 social houses in Shilbottle has stalled due to the contractor going into administration.
Northumberland County Council is building the homes on land at Fairfield View as part of its drive to build more affordable homes in the county.
But the controversial scheme, which was opposed by a number of residents in that area of the village, has run into difficulties.
A spokeswoman for Northumberland County Council said: “Unfortunately, the construction company contracted to build the new affordable homes at Fairfield View has gone into administration.
“We have terminated the existing contract and are working as quickly as we can to get another contractor in place to complete the development.
“Security arrangements are in place on the site.”