Your neighbour sounds very like a not very nice relative of ours. From that experience he will feed on any damage he can do to you, it will inflate his poor self image, so that he needs more and more, weak people are often like that. As the situation has gone beyond ignoring, and as his behaviour is making your life difficult, you have only two choices, give in and move or fight back figuratively not literally.
Start by being a damned nuiscance to the council, every thing he has done, every bit of rubbish, any possible complaint you can make, do so in writing. keep at it, if they have to follow up every complaint he makes then do unto him etc. only twice as much. Sorry for the local council caught in the middle of this, you want to remain where you live then do as suggested here and give as good and more than he does.