Shaun, what I believe you are calling a third floor is the cover over the stairway to the roof area. If that is a "third floor" I can see three others from here. Does appear that they are building a water tank stand on top of the stair well.
I have spoken to the owner and he said he got full approval and all his permits and engineering before he started.
By the way he is somewhat blocking my view, though not much.
Personally I would love a rule that one can not block somebody else's view though those rules are hard to write and hard to enforce. From here I can see several properties about which others have complained. All hose properties are below the guide lines Daniel mentioned. Still one should have the right to develop ones own lot.
I hope the house you first referred to is not adversely impacting your view
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