UK Property Law
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1. Your neighbour has got the wrong end of the stick here. He cannot build a bigger area with permitted development rights. This is because his existing structure does not have a valid planning permission. hence, he cannot just use his permitted development rights as permitted development rights only attach to validly constructed structures. So until such times as your neighbour complies with his valid planning permission he cannot use his permitted development rights. So you need to realise that this neighbour is just messing with your head in telling you he will build a bigger development with permitted development rights. His problem is that he does not currently have a valid planning permission. His whole structure is unlawful, not just the additional unlawful bit he built recently. So you should just realise that it is he who is in the predicament, not you!