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.
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!
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.
Sam Donald
03 Feb 2026
Richard was fantastic to work with - very efficient and knowledgeable, and got the work done with minimal fuss.
Nicole Cruise
13 Jan 2026
Richard was excellent to work with, we have 6 partywalls to complete in a short time and he kept us up to date throughout and chased daily to make sure they were done on time.
Andrew Bower
09 Jan 2026
Geeat experience!
Richard engaged with me quickly and communicated well at all stages, making the whole process easy and managing any queries promptly.
I'd recommend him
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20 Nov 2025
Absolutely brilliant service. H&A assisted us on an urgent basis with a schedule of condition. They were prompt, efficient and extremely professional. The quality of their work speaks for itself. I would highly recommend them.
Hoe
25 Oct 2025
Richard has been extremely helpful when dealing with my queries about my neighbour extension works even after he was informed that he was not appointed as the party wall surveyor due to some communication issues. A great way to handle such situation professionally.
Emma Charlotte
14 Oct 2025
Highly recommend working with Richard and his team.
Ambrose Crofton
21 Aug 2025
Richard was first class with how he helped me with my query. Despite immediately realising Hourican Associates couldn't help me with the work i required, he spent 15 minutes on the phone discussing my problem and directing me to other trusted professionals who could help me. Thanks!!
Lisa Story
15 Aug 2025
Used for a Party Wall Agreement. Incredibly efficient, fast and very responsive to any questions. Thank you!
Charlie
01 Aug 2025
I found out I needed party wall awards from no less than 8 neighbours and AFTER strip out works. Richard Hourican made saving the day a breeze, meeting all our new neighbours and walking them through the somewhat complicated party wall process. I had been told that one could do party wall awards yourself, I now understand there is absolutely no way that would have been done correctly or as efficiently without the help of Richard and his team.
I recommend you call him and explain your situation, he'll sort it and give you a very reasonable fee for the pleasure.
Martin Azzinnaro
26 Jul 2025
I can’t recommend Richard and Hourican Associates highly enough. From the outset of our loft conversion project, they demonstrated professionalism, deep expertise, and a calm, solution-focused approach that proved invaluable.
Not only did Richard provide clear, practical guidance through the technical and regulatory aspects, but he also managed sensitive party wall matters with diplomacy and clarity. His ability to communicate effectively, mediate concerns, and ensure we remained compliant with all building approvals gave us great peace of mind throughout the process.
If you're considering any home extension or loft work, especially where neighbour relations or party wall matters might become tricky, I’d strongly recommend working with Hourican Associates. An absolute asset to any project.
