neighbour encroaching onto my garden

To be honest, if I bought a house in that situation I'd assume the fence was the boundary and then do whatever I liked on my side. I don't think the neighbour has done much wrong there. Obviously if they were subsequently rude about it after being told then that is another matter.

They actually dug out the existing concrete boundary posts along with the chainlink fence which was already there and showing boundary clearly, if they didn’t do this there would be no issue.
I could understand if only my fence was there and they thought it was the boundary line?
 
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I can see the neighbours reasoning that the old fence was abandoned and the new fence and fence line was the OPs intent to define the boundary, so the old posts could come out - in fact he may have thought he was doing a favour.

It would be possible to discover the old fence posts location by looking for the fresher and different infill in the old holes.

Incidentally, if that old fence belonged to the OP and he has responsibility to maintain the boundary (as per directed by the property deeds), then he could be required to reinstate the fence and maintain it in the future. And the neighbour could request for that to happen.
 
Since you didn't realise the old fence was being removed, and the 18" strip was being hacked about, suggests you haven't been maintaining or checking that strip of garden, which probably prompted the neighbour to take it over - wrongly.

I don't suppose he 'wanted' some extra garden, more a case that he wanted it too look half decent on his side.

He should have asked, but people don't have the combined manners and common sense to do that.
 

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