Tensions between neighbouring property owners are at an all-time high. We have seen a significant increase in cases for neighbour and boundary disputes since the start of the pandemic. It may be a coincidence, but this increasing trend seems to have been accelerated to a new level by lockdown, working from home and the pandemic.
This seems to be supported by recent research by Direct Line which showed that 6.6 million people in Britain had been involved in a dispute with neighbours in the last year, with disagreements over property boundaries marked by walls, fences and hedges, being the most commonly reported.
Successive lockdowns plus home and hybrid working arrangements have tested relations between neighbours, with people spending more time at home and viewing their four walls as a haven away from the outside world. Noise disturbances have also taken a toll on previously cordial neighbourly relations, sending case numbers soaring.
Unresolved neighbour disputes and their impact on house saleability
John Gorner, Consultant Solicitor in our Dispute Resolution team, says:
“The saying that we view our home as ‘our castle’, is truer than ever. There is a lot of emotion attached to our homes, which can spill over into hostility and resentment if a threat is perceived. The aha moment in all property disputes is usually when I tell the client that their home and possibly their neighbour’s home, could be unsaleable, either at all or without a very substantial reduction in price, because the ‘blight’ on the properties caused by the unresolved dispute that will generally last until an enforceable settlement is reached. Purchasers are often reluctant to proceed to buy a property affected by an unresolved dispute. Even if they are prepared to go ahead, their mortgage lenders may not be prepared to do so, thus causing the sale to fall through.”
In that context, the legal costs of resolving a dispute out of court are generally in proportion to the value preserved in their property. The costs of a badly dealt with dispute that goes all the way to Court are terrible for the loser – as the loser generally pays the winner’s cost. Years of future tension living side-by-side, or the prospect of struggling to sell the property at the right time for the right price, can be painful for both parties.
Key advice from our Neighbour Disputes specialist
- It is important to have experienced lawyers who map out a strategy from the outset
- Litigation is a last resort, not a first resort and it is important that your lawyers engage in all appropriate forms of Alternative Dispute Resolution (“ADR”) from and early stage and do not take an overly aggressive stance that leads to the dispute becoming entrenched. ADR can include mediation, joint settlement meetings and early neutral evaluation, etc.
- Solicitors can act for parties on either side in coming to an agreement, but they must consider the ability to sell and whether it is worth the fallout. Any settlement must be properly set out in a Settlement Agreement that not only deals with the agreed terms but does so in a way that removes any blight from the properties involved.
- The Property Information Form completed when selling your house must state whether there are any issues with rights of way or other disputes. If there is an unresolved issue, mortgage lenders may not go anywhere near, leaving it difficult to sell the property without settling the dispute first.
- Consider whether the property is your forever home or is it a fixer-upper-and-move-on? The fee to resolve the dispute is a drop in the ocean compared to the value of the property. If you’re willing to part with it and drop the dispute, it means you’ll be able to sell your property with relative ease.
Contact our Dispute Resolution team
At Slater Heelis, we work with a number of specialist boundary surveyors and other experts and have access to specialist mediators including the Royal Institute of Chartered Surveyors (RICS) mediation service.
Is it time you resolved your ongoing neighbour dispute? Reach out. Contact us on 0161 969 3131 or fill in our contact form and we’ll be in touch as soon as possible.