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Councils can apply, if there is enough evidence from neighbours, for an 'ASBO' - anti-social behaviour order, and the families of the offenders COULD be compulsorily evicted.
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I deal with harassment of this sort every day, but on a partner/family member basis. We dont deal with neighbour problems of this type because it is very very difficult to get a result.
Keeping a diary is a very good idea, and please dont worry about contacting the Police - make yourself as much of a nuisance as you can.
Any letters or back up you can get from Doctors, Social Services etc is of help and get them to write direct to the Housing Department. Keep on at them too. They'll get so fed up they may decide to rehouse you to 'shut you up'.
We have an organisation in this area called Shelter who help people in your situation. If you have one contact them. We also have a Law Advice Centre in town - you may have one. If so contact them - they have helped a lot of people who have come to us who we cant help. For some reason legal aid is very difficult to get in this type of case.
Just to finish on a positive note - one of our client's who we were dealing with on a different matter was suffering from problems with neighbours. It took a while but she did win and got a transfer to another property.
JUST KEEP ON TRYING AND ANNOYING THE AUTHORITIES. IT CAN BE DONE, BUT YOU NEED TO HAVE A LOT OF PATIENCE AND BE BLOODY MINDED ABOUT THE WHOLE THING. DONT LET ANYONE FOB YOU OFF.