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To all you guys who said you'd retaliate drastically (especially the one taking out wheelnuts - WTF?!): would you actually do that? Are you insane?
I'm a law student. Which is not to say that I'm an authority, but I know what counts when it comes to civil litigation. If the situation escalates at all and ends up in court (you suing him / him trying to sue you, whether for money or an injunction), you want to come to court with 'clean hands'. Which means no fighting back. Equity will provide a remedy for unconscionable conduct, which means play nice.
Have you got front windows? I'd say hook up a webcam, preferably one with infrared, to look over the cars. If you notice anything in the morning, review the last night's footage to see what happened. Some dickheads keyed nearly every car in my whole street recently, and I was very seriously considering this option.
If he came onto your property, that's trespass, which is actionable per se (ie. no damage has to occur, just being there is an offence). If he touches your property (perhaps a grate, for example), that's trespass to chattels. If he moves the grate (and you can prove it) and you damage your car driving over it, that's negligence on his part.
As for the next step to take - I would talk to the police. Even if it gets you nowhere, it shows later that you expressed concern in the right place. The only real way you're going to get anywhere is evidence, and a camera of some description would greatly help in that regard. Failing that, talk to a solicitor and see what can be done.
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