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Housing association settles legal battle with residents over cut-off gas supply

A housing association has settled a legal battle with 57 residents who were left without a gas supply for up to four months in January 2016.

The Peabody Trust has agreed to pay more than £30,000 to the claimants from the Strawberry Vale estate in East Finchley, with individual payouts ranging from £200 to £2,000. The housing association will also pay the costs of the claimants’ lawyers, Hodge Jones & Allen.

The legal proceedings arose after the gas supply to an estimated 267 homes on the estate was cut off because National Grid deemed it unsafe due to a faulty meter.

The defective meter was replaced, but the Peabody Trust was unwilling to reconnect the supply, leaving residents without gas for cooking and in some cases, for heating and hot water. All residents on the Strawberry Vale estate were forced to use electric cookers, a more expensive alternative.

The Peabody Trust agreed to reinstate the gas supply after Hodge Jones & Allen applied to the Central London County Court for an injunction in February 2016.

By late May 2016, all residents were reconnected, but many had run up considerable debts due to large electricity bills, the law firm said.

Hodge Jones & Allen said that during legal proceedings it was discovered that the Peabody Trust had failed to adhere to gas safety regulations relating to the gas supply since 1998, and following the replacement of the gas network in 2008. The Trust had not obtained a gas safety case in line with regulations that came into force in 1996.

The Peabody Trust was issued with an improvement notice by the Health & Safety Executive, requiring the necessary changes.

Jayesh Kunwardia, partner and head of the social housing team at Hodge Jones & Allen, said: “Residents of the Strawberry Vale estate suffered major upset and upheaval as a result of Peabody’s direct failure to reinstate the gas supply for so long. It was never right that residents should be out of pocket for Peabody’s mistakes and I am grateful to them for entering into negotiations and avoiding a long and costly trial.”

Shona Perkins, treasurer of the Strawberry Vale Residents Association, said:“Our community came together to challenge Peabody’s actions and after a long David and Goliath battle I am pleased that we have finally settled the case. Importantly we also received an apology from Peabody. We now look forward to more positive times ahead and a better relationship with our landlord, Peabody.”