Alas, they're gutted to admit our neighbour is for the birds (4)
I believe the answer is:
auks
'birds' is the definition.
(auk is a kind of bird)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for auks that I've seen before include "Northern black and white diving birds" , "Birds (such as razorbills)" , "Sticky diving seabirds" , "Stocky diving birds" , "Fliers" .)