A retired civil engineer who dug a labyrinth of tunnels under his £1 millionLondon home has been told to pay £300,000 for repairs to stop it and the surrounding area collapsing.

William Lyttle, 77, spent 40 years excavating hundreds of feet under his home and nearby pavements. Hackney council eventually evicted him before sending workmen to save the house, which had been propped up with wooden beams and household appliances.

The council put scaffolding around the 20-room Victorian property in Mortimer Road, De Beauvoir Town, and concrete was poured into tunnels. Now the High Court has ordered Mr Lyttle to pay £283,026 for the repairs and £10,000 legal costs - thought to be the biggest ever award for a "public nuisance" case.

Today neighbours, who have dubbed him Mole Man, reacted with relief, especially after a section of pavement collapsed.

But one said: "People hate him but he's a nice, intelligent fellow. I don't know why he digs but he knows what he's doing. He used to have a business in Old Street. There were once 68 skips full of earth outside and the tunnels go 12 feet down. I wish I could shovel like he can."

Mr Lyttle, who is said to have a farm back home in Ireland, created one property from two he bought for a few thousand in the Sixties. He turned down an offer of £1.2 million for it recently. A court ordered him to knock down or repair it in 2006 and when he did not he was evicted. He returned and tried to do more work but was stopped by an injunction.

Simon Butler, Hackney's barrister, told the High Court a collapse could have killed someone. "Sections of floor were propped using items such as odd timber and a fridge freezer connected to a disused bath. Mr Lyttle had cut away at the foundation of the neighbouring property." He also dug holes in which he put cars, boats and other items. Mr Lyttle, who defended himself, was given 14 days to pay.

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