You have the land and have lined up the construction team - but then the neighbours step in.

Neighbour disputes can seriously impact any development. Issues around access, construction activities or restrictions in private covenants can stall progress, increase costs and cause delays.
Here are some key considerations for developers to keep in mind when choosing a site, to help minimise risk and keep your project on track.

Key considerations 

Access 

Access is a fundamental consideration that is frequently overlooked, often giving rise to disputes with neighbouring landowners. It is essential that developers confirm whether the land has reasonable access - via a public road, a right of way, or whether the land is effectively landlocked - and whether that access is sufficient to accommodate the vehicles and machinery required for the proposed development.

Rights of way

If access relies on a right of way easement (ROW), the terms of the easements should be reviewed carefully. Three key questions to ask are:

1. Are there any restrictions on using the ROW for construction activities, such as heavy vehicles, deliveries or prolonged works?
2. Can the ROW be used by multiple owners if the property is subdivided in future?
3. If the developer is acquiring more than one parcel of land, are all parcels able to rely on the ROW if needed?

Restrictions on construction traffic can delay works or require alternative access arrangements, and a ROW that cannot accommodate additional users after subdivision may limit development potential or trigger disputes with neighbours.

In the last year, the courts have seen various cases pop up concerning access rights. In 382 Colombo Street Ltd v Frame and Mirror Ltd, neighbours attempted to block construction traffic using a shared right of way.^[1] The High Court upheld the developer’s right to use the right of way for construction traffic, granting a permanent injunction against obstruction. Courts will protect access where the easement’s essential character supports development needs, but only with strong evidence.

Landlocked land

Landlocked land has no legal access to a public road, meaning there is no route for vehicles or pedestrians to enter or exit without crossing someone else’s property.

This situation can create significant challenges for developers because access must be negotiated, either through getting a neighbour to agree to grant an easement or by applying to the court for relief under the Property Law Act 2007. Relief often comes with conditions and compensation, as seen in recent cases such as Watters v Mrikin and Hamilton v Fox, where developers were required to pay for newly formalised access.^[2] Compensation must reflect the benefit to the developer, not just the detriment to the neighbouring landowner. Developers should therefore be prepared to pay reasonable compensation to avoid delays.

Access issues are best addressed early through good due diligence, clear documentation and a willingness to negotiate.

Construction impacts and neighbourhood management 

Construction activities can disrupt the daily lives of neighbours, leading to objections, council intervention, or even legal challenges. Proactively managing these impacts is essential for keeping your project on track and maintaining positive relationships with the surrounding community. For example, in Grassmere Estates, after neighbours raised concerns about traffic and safety, the council imposed urgent restrictions including requiring marshals for cycleways and pedestrian routes. The developer's willingness to respond with solutions helped avoid escalation and kept the project moving.

Developers should plan ahead to minimise these impacts. Limiting truck movements during peak times, monitoring noise levels, and providing clear communication about works can help maintain goodwill. Visible mitigation measures and early engagement with neighbours not only reduce the risk of formal objections and council intervention, but also build trust and support for the project.

Covenants and private restrictions: can you reduce objections up front? 

Land covenants are instruments registered against the title to land that impose restrictions on its use, including limitations on subdivision, building design and permitted activities, and can empower neighbours to object to or delay a project. Covenants and private restrictions can quietly undermine a development if not identified and managed early.

In Sunder v Smith, a developer’s attempt to remove a covenant that limited subdivision was rejected as the court found it still protected the neighbourhood’s character.^[3] The case highlighted that, even if a covenant seems outdated or inconvenient, it may still be enforceable if it benefits other landowners. Residential developers should consider building design covenants as durable and difficult to alter. However, Simpson Grierson has acted in a successful High Court covenant modification application for Auckland developers, paving the way for development in Drury.^[4]

Covenants and private restrictions are best addressed at the outset. Early identification, open communication, and a willingness to negotiate or seek legal modification can prevent costly delays and foster positive neighbour relations.

Major infrastructure: what to look out for?

Large-scale developments, such as solar farms, wind farms or other major infrastructure, face heightened scrutiny from councils and local communities. Neighbour objections can delay or halt projects if concerns about environmental impact, amenity or business disruption are not addressed early.

Recent disputes show overlooking these concerns can stop projects in their tracks. At Waiuku Wind Farm, the High Court dismissed the developer's appeal because the application failed to provide solid ecological evidence and didn’t address neighbours' concerns about visual impacts and proximity to homes, despite the renewable energy benefits of the project.^[5] Similarly, consent for Maniapoto Solar Farm faced public backlash due to claims it did not sufficiently assess noise and vibration effects on a nearby business. These cases highlight how gaps in impact assessment can undermine the consent process.

Major infrastructure projects require proactive, evidence-based engagement with neighbours. Early and meaningful consultation, robust impact assessments and visible mitigation measures are essential to securing support and avoiding costly delays.

Moving forward

Neighbour issues can seriously impact development projects, but early planning and open communication make a real difference. Developers should identify risks like access, covenants and construction impacts from the outset and engage proactively with neighbours as stakeholders to avoid disputes and build support.

Get in touch

Please get in touch with one of our experts if you’d like to discuss any of the issues raised in this article, and the impact on your business.

Special thanks to Samantha Johnston for her assistance in writing this article.