Network Rail is facing possible legal action amid claims that noisy night work is making the lives of Hinksey residents a misery.

The firm has been accused of breaking agreements at Hinksey Sidings, with families regularly woken by wagons stockpiling ballast.

Residents complain of being disturbed as late as 2am and Oxford City Council is considering serving a noise abatement notice on Network Rail to restrict its hours of working.

Council staff found night noise levels to be unacceptable after taking measurements. The authority has written to Network Rail demanding that it honours an agreement covering working times and noise levels.

The ballast work at Hinksey Sidings, close to hundreds of homes, has sparked numerous complaints since the virtual quarry began operations in 2000. But the council's patience snapped with an increase in summer night work and the amount of ballast moved in and out of Hinksey.

Trevor Dixon, principal environmental health officer, told councillors: "This year the trend in working hours changed considerably, with more frequent working in the evening that often continued until 11 o'clock at night." He said a change in the wagons used to bring deliveries of ballast to the site meant more trains were being required to maintain the stockpile.

Bob Price, city councillor for Hinksey Park ward, said: "The level of noise has been quite extraordinary in the last four or five months. We have asked for an undertaking to say they will stick to what was agreed. Network Rail is now in the last chance saloon."

Dr Niki Carter, a librarian of Wytham Street, said: "There is horrendous clunking and shunting and then the noise of ballast being loaded. It's not just the noise but the terrible light pollution and the fumes."

After putting up with disturbance over years, she has now decided to move.

Journalist David Radford, also of Wytham Street, said: "They have been doing a lot of work over the summer nights. It can go on all hours, two even three in the morning.

"Our son is sitting his AS Levels at the moment. It is not what you want when you have exams the next day."

The city council says that although no planning permission was required, Network Rail had agreed to restrict working hours between 7 am to 6.30pm on Mondays to Fridays, with evening and weekend work allowed in exceptional circumstances.

Network Rail spokesman, Stuart Buss, said: "Recent improvements to the railway around the Oxford area have led to a greater demand on ballast from Hinksey Sidings.

"Increased use of the sidings is a temporary measure and every effort has been taken to reduce disruption, including the noise reduction barriers put up previously at a cost of some £500,000."