A landmark remote housing decision made in the Supreme Court last month is set to face an appeal from the Northern Territory government.

Last year residents of the remote Central Australian community of Santa Teresa won a case against the NT Housing Department over poor housing conditions and long-delayed repairs.

They launched an appeal which resulted in last month’s decision, granting them greater compensation as well as a major ruling the standard for “habitable” housing should be set higher.

Now the NT Government has indicated it will appeal that decision, despite Chief Minister’s Michael Gunner’s statement that housing would be an “important commitment” when re-relected last month.

Isabelle Reinecke is the head of the Grata Fund, which has been backing the legal case, and says the decision is “astounding”.