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!
It was a pleasure working with Richard of Hourican Associates. He was very professional and responsive throughout a stressful time for us. I’d have no hesitation recommending him and their services.
Jena Mihalovic
26 Feb 2024
We had the pleasure of working with Richard Hourican and his team at Hourican & Associates for our party wall agreement, and the experience was nothing short of exceptional. From start to finish, Richard exhibited a level of professionalism and expertise that surpassed our expectations.
Communication was a standout aspect of our collaboration with Hourican & Associates. Richard kept us informed every step of the way, ensuring that we were always in the loop regarding the progress of our party wall agreement. Any queries or concerns we had were promptly addressed, contributing to a seamless and transparent process.
The timeliness of their work is commendable. Unlike some experiences we've heard about, there was no unnecessary delay or dragging out of the process. Richard and his team efficiently navigated the complexities of our party wall agreement, demonstrating a commitment to meeting deadlines without compromising on the quality of their work.
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31 Jan 2024
Hourican Associates handled a complex set of party wall agreements for us with a range of stakeholders including both leasehold and freehold owners. From our first conversation, Richard's vast knowledge of this process was evident; he explained the whole process clearly and answered all my questions thoroughly. Communication was extremely prompt the whole way through with Richard always making time to chat on the phone to keep us updated. I would highly recommend Hourican Associates.
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26 Jan 2024
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27 Nov 2023
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18 Nov 2023
Richard is fantastic, understands the situation and helps sort the PWA quickly. He’s also very responsive. We have used Hourican twice now and would definitely use again.
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03 Nov 2023
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26 Oct 2023
Very new to this company - but I have been delighted by their professionalism and willingness to help. Their thorough, clear and efficient approach to my party wall needs has been truly impressive.
anya barnes
02 Oct 2023
Hourican Associates have been fantastic to work with. Always happy to answer any questions we have had via phone or email. Our neighbour also said that a thorough job was done. Would definitely recommend to a friend - great service thank you!
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26 Sep 2023
From initial consultation to final implementation, Richard’s attention to detail and commitment was evident. Hourican Associates effective communication really made the whole PW process simple for us. Would highly recommend!
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20 Sep 2023
Hourican Associates are a very professional company with a personal touch and attention to details that are often missed by others.
They are very project focused and attentive to their client needs and requests.
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19 Sep 2023
Very happy with the service that Richard provided. He worked quickly and was very responsive to calls, emails, and clarifying questions we had.
