PROPERTY sellers who do not get on with their neighbours could face large financial penalties if they fail to disclose disputes.

A landmark ruling has made it possible for buyers to take the previous owners to court for compensation if the seller's property information did not disclose disputes with neighbours.

According to research from the Alliance and Leicester bank, one per cent of Britons intensely dislike their neighbours and seven per cent have nothing to do with them at all.

The warning follows a landmark ruling following a court case in which a couple sued the previous owners for not disclosing long- running problems with neighbours over access rights.

The pair won the case and were awarded £67,500 in compensation and costs.

Ken Wiper, of Latimer Hinks solicitors in Darlington, said: "This ruling has set a precedent for all the property buyers who are not given adequate information about neighbour disputes at the time of purchase.

"It is imperative that sellers are open and honest about any problems they have had in the past and whether or not they have been resolved.

"Homeowners can choose their dream home but not their neighbours.

"Being up front and open about any problems will not necessarily affect a sale, but trying to hide vital information may cost the seller a lot more than they bargained for."