Pencil pines are planted in a concrete border and right next to and below our retaining wall, they have grown very tall and the trunks have nearly outgrown the border. What damage will they cause to our retaining wall and garage wall as both walls are built up? They are only watered when it rains
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1pictures and your location will help provide a really good answer. Tell us how big the trees are, what the retaining wall is made from.... – kevinskio Aug 27 '18 at 10:29
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Please add something for scale in your pictures. Need to see how wide the bed is in relation to its height. What the heck are pencil pines? Did you construct the retaining walls? Do you have surcharge behind these walls? Is there drain pipe behind and below the foundation of these walls? How high are these walls and of course what material? – stormy Aug 28 '18 at 07:47
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Pencil Pine (Cupressus sempervirens) is frequently grown in pots and confined spaces. However eventually they run out of space to grow and can show signs of stress, dying branches and littering. If you have a line of them then one or two of the most vigorous will show the first signs.
You say your pines are "below" the retaining wall. This makes me imagine the house built on a flat area behind the wall, so that the bottoms of the pencil pines are hidden from the house and projecting upwards so the tops are visible. Here is a pic - please tell us where it is wrong.
If the trunks are the width of the growing space, then best get them out and replace. Trees have a limited life span.

Colin Beckingham
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Thankyou for your help, we are going to have them removed i think would be the best option. – Deb Aug 30 '18 at 03:44