Homeowners fear their road could collapse into neighbours' gardens after developers refused to build two retaining walls.

The 29 semi-detached houses on either side of the road in Badgers Close, Newhaven, were built over the last five years on a plot of land bought by HC Developments (UK) Ltd.

An independent engineering survey commissioned by residents states vehicles mounting the footpath could cause the bank overlooking the back gardens of Gibbon Road to collapse.

This could take the footpath and the edge of the carriageway with it, according to the report by Peter Holliday and Associates.

Original plans show two retaining walls but HC Developments has refused to build the £50,000 walls or complete the road and has now gone into liquidation.

One couple, Teresa Crick, 37, and her 30-year-old partner John Pingram, are struggling to make ends meet after having their application to remortgage their house refused due to the road's state.

Mrs Crick said: "This is a street from hell. It's the first house we ever bought.

"We set up a new business but can't remortgage the house to pay off a £10,000 tax bill. We'll never be able to sell this house until the road is sorted out."

HC Developments set up a company called Badgers Close (Newhaven) Ltd to take control of road maintenance, street lighting and drainage.

The company was to be transferred to the residents but they refuse to become directors until the walls are built as they do not want to be held liable for any subsidence.

A further complication is that Lewes District Council failed to inform HC Developments the land on which the walls were to be built belongs to other private individuals.

Steve Floor, 55, chairman of Badgers Close Residents' Association, said one solution could be for the council to adopt the road.

He said: "The council doesn't seem to want to do that. We have to pay for street lighting, drainage and road maintenance but the only thing we get for our council tax is our bins emptied."

Another resident, Emma Yates, 32, said: "I have three young children. It's not safe for them to play outside because of the steep bank and all the glass and rubble."

Residents have also complained about a catalogue of problems with their houses. These include non-working phone lines, electricity blackouts, toilets not flushing, windows not closing, patios collapsing, creaking floors and doors failing to shut.

Alan Blackburn, one of HC Development's former directors, owns Blackburn Building Contractors, which built the houses and road.

He said a geotechnic engineer's assessment of the road showed there was no danger of subsidence. He said: "The road has been in place for five years. I've had 40-ton lorries up and down it and there has been no movement whatever, so it's all a storm in a tea cup."

He said he was still living up to his commitments with the National House-Building Council to fix any problems with the actual properties under the terms of a ten-year guarantee.

A spokesman for Lewes District Council said: "We are aware of the situation at Badgers Close and it is our intention to use planning enforcement laws to require the completion of the retaining walls as originally approved by the planning committee."