Can you vent a boiler into a shared alleyway 3feet wide?

I want to install a combi-boiler in a utility room where the flue will be directed into the alleyway between our house and our neighbours house. The alleyway is 3 feet wide. We've had many plumbers around to give quotes and nobody has suggested there would be a problem except the last one who says there is some regulation regarding the width of the alleyway. Apparently the flue may damage the neighbours wall. He suggests venting it upwards through the roof of the utility room instead which adds to the cost. Has anybody heard anything about such regulations?

Also, we plan to put a tumble dryer in the same utility area. Do you need to vent a tumble dryer as this may cause a similar problem.

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