Local authorities in Dublin have pulled a €20 million contract to build modular homes in the capital because of a lack of interest.

Council officials say there were insufficient applications to build the prefab-style homes, which were seen as a temporary solution to the housing crisis.

At their launch last September the Council showed sample units and said 150 homes could be in place in four months under a new fasttrack procurement process.

A development of 22 prefabs, which were due to be open in Ballymun before Christmas, should be ready next week, while a tender will be reissued to find a builder for the other 131.

Another example of the proposed modular homes, as unveiled last year. Photo: via Dublin City Council on Twitter

However homeless campaigner Fr Peter McVerry does not hold out much hope:

"I am very surprised to be honest. I am very disappointed for those families who could have swapped an hotel bedroom for a lovely modular home.

Six or nine months ago when these homes were on display there was great interest from the contractors. One of them told me he could produce ten of these modular homes every day.

Providing them now is going to be just as slow as building houses."

Fr Peter McVerry spoke to Newstalk's Breakfast earlier: 

The interior of one of the show modular homes. Photo: via Dublin City Council on Twitter

Councillors on Dublin City Council were told at the start of the week that 131 of the homes would not be completed until the end of the year, but officials did not advise the elected representatives that there were going to pull the tender competition the next day.