1) Rather than referring to a geographic locality, it placed emphasis on the shared values of a community.
The way that ‘neighbour’ was used in the Tudor period influenced the meaning of 'neighbourhood', placing emphasis on the values shared by the community: 1503 she shuld have ben grievously punished and amercyd bot for pitie and neghbourhed and remitted hir punnyschment unto viijd, York
1503 accordyng to olde neghburode & gude custome with oute grugyng of ather party, Selby
1668 such part and rate of cattlegates, woods, underwoods, turbaryes and other profits and commodities … as are allotted … within Hanlith according to the order of neighbourhood there used.