North Devon Homes has been fined £6,000 with £833 in costs after capping off a chimney at one of its properties despite the chimney being in use.
Barnstaple Magistrates' Court heard how the South-West housing firm were investigating damp at a property at Church Lake, Landkey.
In an attempt to solve the problem, a chimney was removed and the roof tiled over, leaving the chimney terminating within the home's loft despite the chimney being used to flue the gas fire and gas boiler.
Several weeks after the work was completed, the tenant went into the loft and discovered a very strong unpleasant smell.
At around this time, the tenant's carbon monoxide alarm was activated.
Emergency gas services were called to the home and classed the situation as 'immediately dangerous', meaning the situation could be an immediate risk to life.
The incident was investigated by the Health and Safety Executive (HSE) which prosecuted the housing firm.
North Devon Homes of Westacott Road, Barnstaple, pleaded guilty to a breach of the Health and Safety at Work etc Act 1974.
HSE Inspector, Simon Jones, said: "This was an incredibly dangerous situation where gas appliances were left to pump potentially poisonous and fatal gasses into the loft space of a home instead of to outside the property.
"Whenever a chimney is removed or capped careful checks should be taken to ensure that the chimney is not being used and cannot be used in the future.
"Proper control by North Devon Homes Ltd and clear work instructions would have prevented this dangerous situation from arising and putting the lives of their tenants at risk."
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