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No. It was one they put in on the shared supply pipe to establish whether there was a leak. I assume it's in a publicly visible location.
This is down to No. 2 arguing that without proof of a leak you couldn't establish there was one. Which as No.1 apparently had a dug hole* constantly filling with water sounds a bit obtuse... but probably the correct thing to do.
*dug for an extension being built
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without knowing the layout of the props and pipes - any noticeable increase in bills? or you all un metered?
if its a meter it should be in the pavement - you will easily see it a scar as the ground would have to be dug out to install it. if not, they just fitted a temporary logger.
if you have a permanent meter which has the dials etc - simply tell all properties to isolate their water by the stopcock and see if the meter is still moving.I would called affinity and ask for a reinspection to be sure - they can easily sound all pipes (assuming not plastic) to hear for top noise
as you said - logical solution will be no1-5 to come to an agreement and locate the leak if one and fix it - any reputable groundworks co can do it - not sure of cost
have you all got individual meters or was it just one they put in?