Could the council be planning to roll out "free" wi-fi on the streets? The test signals prior to an announcement could cause the problems reported.
To the poster with the problem, try changing the channel on your wifi system. It could be that by coincidence your neighbour has either just installed wi-fi, or has changed their channel for some reason, such as installing a new router. One of the network sniffer programs will tell you if interference is likely to be the cause and suggest the best channel to use.