Turns out the answer is quite involved but very specific to my setup:
although i have my org.gradle.java.home property set to the java 1.7 jdk, I am using a properties plugin that uses different property files according to an environment variable called environmentName
this property was set to the incorrect value thus it was reading JAVA_HOME from my environment rather than the variable i set in the property file i wanted. I changed this and the jre was switched to the correct runtime.