Party Wall Damage – Who Pays?

Party Wall Damage : Party wall disputes are among the most common issues that arise between neighbouring property owners, particularly during construction or renovation works. When building works affect a party wall — whether through vibration, excavation, or structural modification — damage can occur.

Naturally, the central question becomes: who pays for party wall damage?

Under the Party Wall etc. Act 1996, a clear legal framework governs how building owners must notify and compensate adjoining owners for any works that might affect shared or adjoining structures.

However, liability for damage often remains a contentious issue. This article explores, in detail, the legal obligations and practical implications surrounding party wall damage, how costs are assessed, and how disputes are resolved.

What Is a Party Wall?

Before delving into responsibility for damage, it's essential to define what constitutes a party wall. According to the Party Wall etc. Act 1996, a party wall is:

A wall that stands astride the boundary of land belonging to different owners and forms part of a building.

A wall that stands entirely on one owner's land but has been built up against by another owner.

A party fence wall (a wall not forming part of a building but standing on the boundary line to divide land).

Party walls are commonly found in terraced or semi-detached housing, but can also arise in commercial buildings, flats, or structures that are closely spaced.

When Can Damage Occur?

Damage may arise from a variety of building operations covered by the Act:

Excavating near adjoining structures (e.g. for foundations, basements, or underpinning)

Cutting into or removing projections from a party wall

Raising, thickening, or demolishing parts of the wall

Inserting beams or installing damp-proof courses

Such works, even when carried out with care, can result in:

Cracking to plaster and finishes

Dislodged tiles or coping stones

Subsidence or movement

Water ingress from disturbed flashings

The Building Owner's Responsibility

The building owner is the party initiating the works that affect the party wall. Under Section 7(2) of the Party Wall etc. Act 1996, the building owner must compensate:

“...any adjoining owner and any adjoining occupier for any loss or damage which may result to any of them by reason of any work executed in pursuance of this Act.”

This section clearly places financial liability for party wall damage on the building owner, not the adjoining owner.

In practical terms, this means the building owner is:

Legally required to make good any damage caused

Obliged to fund repairs or pay compensation

Responsible for appointing a surveyor (if required) to assess damage

Even if the building owner follows all legal procedures — such as serving notices and obtaining consents — they remain liable if damage occurs as a result of the works.

Party Wall Damage - Making Good or Compensating?

Section 11(8) of the Act gives the adjoining owner the right to demand financial compensation rather than repairs:

“Where the building owner is required to make good damage under this Act the adjoining owner has a right to require that the expenses of such making good be determined in accordance with section 10 and paid to him in lieu of the carrying out of work to make the damage good.”

In other words, the adjoining owner can opt for:

The building owner to carry out the repair works themselves; or

Receiving money to fund the repairs independently.

This flexibility helps avoid disputes where the adjoining owner may distrust the building owner's contractors or wish to use their own.

Role of the Party Wall Surveyors

When damage occurs, and the parties do not agree on liability or compensation, they may trigger Section 10 of the Act. This requires the appointment of:

An agreed surveyor (if both parties consent), or

One surveyor by each party, with a third surveyor selected to resolve disputes.

These surveyors produce a Party Wall Award, which:

Determines the cause and extent of the damage

Specifies who pays for what

Includes a detailed schedule of condition (pre-works and post-works)

Outlines remedial works or cash settlements

The Award is legally binding. Either party can appeal it in the County Court within 14 days of service, but absent such appeal, the decision stands.

What If Damage Happens Without a Party Wall Notice?

If the building owner fails to serve a notice under the Party Wall Act before starting works, and damage results, they may be liable for:

Trespass

Nuisance

Negligence

The adjoining owner can bring legal action outside the Act and may seek:

Injunctions to stop works

Damages in tort

Court orders for repairs

Therefore, the additional risks that result from skipping the statutory notice process are very high. They expose the building owner to broader legal consequences and significant potential court costs.

Security for Expenses

Section 12 of the Act allows the adjoining owner to request security for expenses before any works begin. This is particularly important where:

The proposed works are complex or risky (e.g. basement excavation)

The building owner is financially unstable

Security is often provided in the form of a sum held in the surveyors client account (if they have one), a bond, or an escrow account. This process ensures that funds are available to pay for remedial works if damage occurs.

If the building owner refuses to provide security, the works cannot proceed until the dispute is resolved, either by agreement or via a Party Wall Award.

What If the Adjoining Owner Also Uses the Wall?

In some cases, the adjoining owner shares use of the party wall — for example, it supports both properties’ floors or roofs. In such instances, cost allocation depends on the cause and nature of the damage.

Sections 11(4) and 11(5) of the Act provide that where works are necessary due to defects or disrepair, the cost should be shared between the owners in proportion to:

Their respective use of the wall

Their responsibility for the defect

If only one party caused the defect (for instance, due to poor maintenance), that party may bear all the costs.

Surveyor's Fees and Other Costs

Surveyor fees incurred during a party wall dispute are typically borne by the building owner, especially when the works were initiated by them. Section 10(13) confirms that:

“The reasonable costs incurred in making or obtaining an award... shall be paid by such of the parties as the surveyor or surveyors making the award determine.”

This includes:

Surveyor appointments and inspections

Damage assessments

Drafting the Party Wall Award

If the adjoining owner insists on additional or more expensive works beyond what is required to remedy damage (known as betterment), they may be asked to contribute to the costs. This can occur in instances where damage from party wallworks reveals pre-existing structural issues (see the appeal court decision in Taylor v Jones for more detail).

Can Insurance Cover Party Wall Damage?

Party wall damage is generally not covered by standard buildings insurance. However, building owners can purchase specialist insurance policies to cover:

Accidental damage caused by construction works

Damage to neighbouring properties

Professional indemnity or public liability claims

Adjoining owners should check their own policies too, as they may have limited recourse unless the building owner is uninsured or insolvent.

Enforcement and Recovery

If the building owner fails to pay for repairs or compensation as set out in a Party Wall Award, the adjoining owner may:

Pursue enforcement through the County Court

Seek judgment for the amount owed

Recover costs as a civil debt under Section 17 of the Act

In extreme cases, the court can order property liens or bailiff enforcement. It’s therefore vital for building owners to take Party Wall Awards seriously and fulfil their obligations promptly.

Key Takeaways

The adjoining owner can choose between repairs or financial compensation (Section 11(8)).

The building owner pays for party wall damage caused by their works under Section 7(2) of the Party Wall etc. Act 1996.

Surveyors play a central role in determining liability and costs through a Party Wall Award.

Failure to serve notice or comply with the Act can result in legal claims for trespass or negligence.

Security for expenses can be requested before works begin to safeguard against potential damage.

Insurance is not guaranteed to cover party wall damage, so specialist policies may be required.

The costs of resolving disputes through surveyors are typically borne by the building owner.

By understanding the legal responsibilities under the Party Wall etc. Act 1996, property owners can manage construction risks more effectively, avoid disputes, and ensure fair compensation when damage occurs.

Resources

Party Wall Factsheet

Online Party Wall Quote

What is a Party Wall Agreement

Contact

Whether you're starting a rear extension, basement excavation, or loft conversion, early advice from a qualified party wall specialist can save you time, stress, and unexpected expense.

If you're unsure about your obligations or want help navigating the process, get in touch.

For advice direct from one of our Surveyors, please call our Enquiry line on 020 4534 3135. If you would rather we called you instead, please fill in our Contact form and we will be in touch.

For a quick online quote for Party Wall advice, send us the details of your project.

For advice direct from one of our Surveyors, please call our Enquiry line on 020 4534 3135.

If you are planning work that is covered by the Act, or if you have received notice of work from a neighbour and want advice on how best to protect your property please contact: