We have to. Our (non-council) site only started letting us erect sheds earlier this year. Before we can do so we have to let the committee know where we want to put the shed and they contact the surrounding poltholders to see if they mind.
Luckily my neighbours didn't (and seeing as their main crop seems to be brambles I can't see how they could). I live close by, but the shed is still a bonus, otherwise all my tools would have to be stored in our small flat, and I wouldn't have anywhere to take shelter from sudden downpours, brew a cuppa, or store the BBQ!