A £2.5MILLION row of new homes lies in ruins — wrecked by a builder with a pay grudge.

The man, 31, laughed and took snaps as he demolished five empty bungalows with two diggers.

When residents confronted him fearing their pads were next, he said he was targeting only those he worked on and was owed money for.

Some of the houses, weeks away from being occupied, may now need pulling down.

Elaine Francois, 61, who called cops, said: “It looks like an earthquake or bomb struck.

“He was laughing and taking photos of the damage. When police got here he told them he wasn’t paid and that’s why he did it. He was totally calm.”

Neighbour and ex-builder William Griffiths, 67, who challenged his afternoon rampage, said: “He said he wasn’t dangerous but hadn’t been paid.

“He got out of the digger and I thought, ‘Great, he’s stopped’. But he got back to carry on. He seemed happy.

“When police took him away in cuffs he caused no trouble.”

Patricia King, 60, said: “He’s destroyed the lives of people who were going to move in.”

Brickie Jeffrey Keys, 53, who worked on some of the homes in Buntingford, Herts, went to see the damage.

He raged: “We were meant be returning on Monday but now don’t know what we’re doing for work. I’m angry.”

Prices for the homes started from £435,000. The repair bill for the lot could top £500,000.

Cops said a man, 31, of Harrow, North West London, was held on suspicion of criminal damage. They tweeted: “Potentially a disgruntled worker.”