Security for expenses is one of the most technical and misunderstood parts of the Party Wall etc. Act 1996. Some adjoining owners assume it is automatic whenever they feel nervous. Some building owners assume it is never justified and only used to obstruct projects. Both views miss the point. Security for expenses is a statutory safeguard that may be requested in the right circumstances to protect an adjoining owner from being left in difficulty if works stop at an awkward stage or if there is a real practical risk around completion or reinstatement. This article explains what it is, when it may be appropriate and how it is usually handled in practice.
What does security for expenses actually mean?
Security for expenses is not a penalty and it is not the same as surveyor fees. In broad terms, it is a form of financial protection that may be required before the building owner begins work under the rights conferred by the Act. The idea is to guard against the risk that the adjoining owner is left exposed if the works stop mid-way or if reinstatement or protective work becomes necessary and the building owner cannot or does not deal with it.
It is usually discussed in the surveyor process, often in more complex or higher-risk matters such as significant excavation, basement work or intrusive structural projects. It is not routine on every small domestic job. Where it is raised, the key question is whether the facts justify it, not whether one side simply prefers it. Our basement service, excavation service and Award service are often relevant where this issue arises.
Circumstances that may increase the chance of security being discussed
Deep excavation or basement work where an unfinished stage could materially affect the adjoining property.
Projects with unusually high temporary works risk or complex structural sequencing.
Concerns about the funding, delivery or continuity of the proposed works.
Cases where the consequences of stopping mid-project would be especially serious for the adjoining owner.
Situations where the surveyors consider protective financial security proportionate to the risk.
Projects where the statutory rights being exercised are broader than a modest routine domestic scheme.
When is security for expenses most often relevant?
In day-to-day London Party Wall practice, security for expenses tends to appear most often on deeper or more complex projects rather than small routine works. Basement schemes are the classic example because excavation, underpinning and temporary support can create a stage at which the adjoining owner may reasonably worry about what happens if the works stall. Some structural alteration projects can also raise the issue, particularly where the project phasing is demanding.
The question is always one of proportionality. A minor chimney breast removal or simple opening in a party wall may not justify the same approach as a major dig beneath an existing terrace. That is why surveyor judgment matters.
What security is not
Not the same as…
Why the distinction matters
Surveyor fees
Security for expenses is about project risk, not simply paying the professionals dealing with the dispute.
Compensation for proven damage
Compensation is generally dealt with if damage actually occurs; security is a protective measure before that stage.
A general neighbour “comfort payment”
The issue is statutory protection, not buying goodwill or convenience.
An automatic right in every case
It depends on the circumstances and proportionality of the request.
How should owners approach the issue?
Building owners should not panic if the subject is raised. Sometimes it reflects a legitimate concern about the nature of the works rather than hostility. Equally, adjoining owners should avoid using security for expenses as a blunt negotiating tool in matters where the risk does not realistically justify it. The strongest position on either side usually comes from good evidence, clear drawings, competent professional teams and a proportionate Award process.
If your London project may raise this issue, early advice can prevent it becoming a last-minute dispute point. Hourican Associates can review the scope, the risk profile and the likely statutory route before positions harden unnecessarily.
Frequently Asked Questions
No. It may be available in the right circumstances, but it is not a routine entitlement on every job.
An adjoining owner may request it before the building owner begins work under the rights conferred by the Act.
It is more commonly discussed on higher-risk projects such as basement and deep excavation work than on small routine domestic matters.
No. It is a protective mechanism, not an accusation of wrongdoing.
No. It is a precautionary safeguard before the work proceeds, whereas damage issues are dealt with if and when they arise.
Yes, in practice this is often where the issue is considered and recorded if it is justified.
Need advice on whether security for expenses is likely to arise?
Hourican Associates advise on higher-risk basement, excavation and structural projects where security for expenses may need to be considered as part of the Award process.
General information only. The Party Wall etc. Act 1996 applies in England and Wales. This article is not legal advice and does not replace project-specific advice from a suitably qualified surveyor, structural engineer, building control professional, or solicitor where required.
As a specialist Party Wall surveyor, Richard Hourican will protect your interests during building works.
Are you planning a building project – perhaps an extension, loft conversion or basement – that is on or adjacent to your property’s boundary line? Or has a ‘Party Wall’ notice dropped on the doormat informing you of a neighbour’s impending works?
It’s essential to understand all the implications of building plans. If you don’t, it could cost thousands. Our job is to ensure everything is done correctly – and that it doesn’t!
We couldn’t be happier with the professional advice and service we received from Richard. He went above and beyond our expectations in handling a particularly difficult party wall award which we are extremely grateful for. I highly recommend Richard’s services to anyone and will definitely use his services again in the future.
jacqueline munro
20 May 2019
Excellent service, would highly recommend. Richard made the party wall process pain free with both my neighbours happy with the agreements which were drawn up.
Chiswick W4
Charly Swingler
16 May 2019
Richard is a very professional and supportive expert. We have received lots of really helpful advice from the company and as such we feel assured we are carrying out our works appropriately. He is really friendly and puts complicated legal jargon into a laypersons language! I would most definitely use Hourican & Associates again and would not hesitate to recommend them to all. Thank you Richard!
Jennifer Cannon
13 May 2019
We were extremely impressed with the service provided by Hourican Associates. We needed a Schedule of Condition completed to a tight deadline. Richard and his team were able to squeeze us in last minute to accommodate the project. Very professional and competitively priced service. I would highly recommend.
Paul C
22 Nov 2018
I would thoroughly recommend H&A having been referred by the company who are doing my loft conversion, about an unusual party wall matter. Richard was very helpful, professional and knowledgeable and willing to give some free, solid advice. A rarity these days! Should I need the services of a surveyor again in the future, I wouldn’t hesitate to use them and would I’d recommend wholeheartedly to others.
Mark Houston
02 Nov 2016
Fantastic service from Richard, would highly recommend.
Sam Christie
31 Mar 2026
Richard is very responsive and pragmatic and importantly fair to all parties. He is professional and does things timely to ensure there are no delays. He charged a fixed price and needed to deal with multiple garages which created complexity, but he ploughed through and he was able to cut through and inspect the garages to get the party wall award.
Mikhail Grechishkin
30 Mar 2026
Richard is very responsive/supportive, and gets the job done, even in tricky situations like ours.
Julia Brucher
18 Mar 2026
Excellent experience working with Richard. He was highly knowledgeable, gave clear and practical advice, and made the whole process feel straightforward.
What really stood out was his incredibly fast response time, always quick to reply and very easy to work with.
Richard took the time to walk us through all our options around the boundary wall, explaining exactly what we could and couldn’t do without unnecessary jargon. His guidance was practical, balanced, and gave us real confidence in how to proceed.
Would highly recommend!
R Sodhi
15 Mar 2026
Richard Hourican was excellent in handling the party wall matters for our new build. Communication was great throughout and everything was handled efficiently, which made the whole process much less stressful. Would highly recommend!
Nigel Ward
08 Mar 2026
Richard and his team acted as party wall surveyor on our renovation/extension project in Richmond. They have been on the ball, polite, very good with neighbours (2 out of the 3 neighbours accepted them as surveyors), and efficient at closing out the Awards. The Awards are comprehensive and clear. Fees are very fair.
James Lemon
07 Feb 2026
Richard was a great recommendation and went above and beyond to arrange complex party wall agreements for both sets of neighbours.
He worked well with our border team as plans changed and then came together and was highly professional and collaborative. Arranged monitoring and liaised and communicated with everyone smoothly.
Would be a great addition to any building project.
