Many people are installing CCTV in their properties as a home security measure as it has proved to be an effective tool in fighting crime. If the camera is recording you in your home, a place where you would expect to have total privacy then there could be an issue with regards to invasion of privacy.
Firstly, it would be advisable to speak to your neighbour to see if it is possible to move the camera so that it does not point at your property. If this is not possible and you want to take further action you would need to seek legal advice from a solicitor.This means that if a CCTV camera mounted in your neighbour's property is overlooking your land, it is unlikely that they will be breaching the Data Protection Act. However, they may be breaching other legislation such as the law about harassment or voyeurism, and so may be subject to investigation by another body, such as the police.