Quantifying Damages in Neighbour Disputes – Do Financial Wounds Really Last Forever?

Emma Jayne Scullion, an Associate in our Property Litigation team, recently helped a client successfully defend against their neighbour’s claim that past trespassing incidents had permanently reduced the value of her property.

The Case: A Dispute Over Trespass

The case went to trial in late November 2024. Both sides agreed that some minor trespasses had occurred between late 2021 and mid-2023, where vehicles had crossed a small part of the neighbour’s patio. However, no trespassing had happened in the 18 months leading up to the trial, and our client had already given a formal, permanent promise to the court that it wouldn’t happen again.

Despite this, the neighbour argued that future buyers might still be worried about the issue happening again, and she claimed her property’s value had dropped by £23,500. She relied on an expert valuation report to back this claim.

Our client’s position, supported by expert evidence from Mr Paul Raine BSc FRICS MEWI, was that no reasonable buyer would lower their offer because of these past incidents. Mr Raine explained that while neighbour disputes can sometimes affect property value, every case is different and should be judged based on the facts, the market, and the goals of a reasonable seller.

The Court’s Decision

The judge sided with our client. The neighbour’s expert had overlooked an important consideration: how a reasonable seller would view the situation. The judge found our client’s expert evidence more convincing and dismissed the claim for £23,500. The court also ordered the neighbour to cover our client’s legal costs from December 2023 through the trial.

Why This Decision Matters

This case highlights how difficult it is to prove that a property’s value has dropped because of trespass or nuisance. The court emphasised that damages for a reduction in value are reserved for extreme situations where problems are likely to continue. In this case, the judge clearly found that our client’s past actions were just that—past—and wouldn’t impact the property’s future value.

Key Takeaways for Property Owners

If you’re thinking about claiming that a neighbour dispute has reduced your property’s value, remember that proving this requires strong evidence. Simply feeling upset or having bad blood with your neighbour isn’t enough. Courts require clear proof of ongoing harm or risk before awarding damages for a drop in value.

If you find yourself in a neighbour dispute or facing such claims, our team at Berry Smith can provide practical, expert advice to guide you through. Feel free to reach out to us at propertydisputes@berrysmith.com for tailored assistance.

Our client was represented at trial by Mr Sam Aynsley of Counsel, from 30 Park Place Chambers. For more details about this case from his perspective, visit 30 Park Place Chambers.

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