Should we give our neighbour a present?

Nah, don’t reciprocate. Once you start it, it could get very tedious.
Just offer a smiley thank you & leave it at that.
Our new neighbours gave us wine the first Christmas they were here. We were embarrassed but didn’t reciprocate. They’re a nice young couple but we didn’t want that kind of neighbourliness with them.

I think I’d prefer to reciprocate such a kind gesture, a bottle of wine, a box of chocs, something for the garden, whatever you think they’d enjoy.
I would write a little card saying ‘ a small Christmas gift to cheer you as it’s such an usual year for us all’. Something along those lines to indicate it’s a one off.

No, I would say a jolly thanks and leave it at that!

I would probably thank them but not reciprocate.

Wonder why they’ve started now after all these years?

As Elizabeth said, it will have to be a regular occurrence if you reciprocate.

Being a bit ‘Bah Humbug’, I would prefer if they hadn’t given me anything in the first place, and would fret over what to do!

I would get wine, biscuits or chocs but wait until Christmas Eve to give them.

It has now set a precedent though for years to come. If you don’t want this to be every year then I would not send a gift at all.

I would reciprocate but everyone will have a different view so only you can know.they obviously felt they wanted to give you a little brightness in these dull times and why not? they are only small presents Maybe a bottle of wine or some flowers or Christmas chocolates would be nice in my opinion?