AN army of protesters gathered outside Oxford Crown and County Court this morning as the dispute between a group of squatters and leaseholders of a former car garage entered a legal battle.

About 15 homeless people have been living in a disused VW garage in Iffley Road, Oxford, since New Year's Eve and have pleaded with the Mid-Counties Co-op and garage owners Wadham College to let them reside there until the end of the winter months.

But earlier today, a civil case was heard at Oxford County Court as the leaseholder of the building, Mid-Counties Co-operative Investments Ltd, launched a claim of trespass against the various unknown inhabitants to evict them.

Circuit judge Charles Harris QC has adjourned the matter for seven days as the claimant looks to find an 'amicable' solution.

Representing Mid-Counties Co-op, Michelle Caney said there were health and safety issues concerning the building, which included a 'quantity of asbestos' and a potential fire risk.

She added over the next few days the two parties would continue their dialogue and reach a solution. 

The court heard how the majority of the squatters were 'vulnerable people'.

Richard Howlett, a supporter of the group currently staying in the garage, said he felt 'very positive' about working out an agreement.

The 34-year-old, who said he got involved after seeing the rising levels of rough sleepers in the city, added: "We are very pleased that Mid-Counties Co-op chose to ask for the case to be adjourned for a week.

"Going forward we feel like the focus shifts back to Wadham College.

"There are empty flats upstairs, the possibility of living in them has been raised.

"We are very positive about what public pressure can achieve."

On Thursday Wadham College called for the dispute with homeless people to be resolved 'amicably'.

The college said it was 'profoundly sympathetic' to the plight of homeless people in Oxford but warned the former VW garage in Iffley Road was unsafe and contained large amounts of asbestos. 

A spokeswoman said representatives of the college had met with the group known as Iffley Open House and were seeking 'a consensus'.

From the end of February, work is due to start on the site's redevelopment into student accommodation but on New Year's Eve about 36 homeless people set up camp there.

Kevin Brown, Midcounties Co-operative group general manager for specialist services, said: "We are conscious of the fact that this was a building that was used as a garage for many years and is therefore not ideal for residential use, not least because we are aware that there is asbestos on site.

"Constructive talks are being held at the moment and therefore we are reasonably confident that an amicable solution can be found."