Overview of Party Wall Damage
Party wall disputes frequently arise between neighbours, particularly during building or renovation projects. When construction work impacts a shared wall—through vibrations, digging nearby, or structural changes—damage can occur.
A common concern is: who is liable for the repair costs?
The Party Wall etc. Act 1996 establishes clear rules for notifying neighbours and compensating them if building works affect shared or adjacent structures. However, assigning responsibility for any damage can still lead to disagreements.
This guide explains the legal duties involved, how costs are determined, and how conflicts are typically settled.
Defining a Party Wall
Before discussing liability, it’s important to understand what qualifies as a party wall under the Party Wall etc. Act 1996:
- A wall standing on the boundary between two properties, forming part of a building
- A wall fully on one owner’s land but built against by a neighbouring owner
- A boundary wall (also known as a party fence wall) that divides land but isn’t part of a building
Party walls are common in terraced and semi-detached homes but can also be found in flats, commercial buildings, and other closely spaced structures.
When Does Damage Typically Occur?
Damage to party walls can result from various construction activities, such as:
- Excavations near neighbouring buildings (for foundations, basements, underpinning)
- Cutting into or removing sections of the party wall
- Raising, thickening, or demolishing parts of the wall
- Installing structural elements like beams or damp-proofing
Even when done carefully, these operations may cause:
- Cracks in plaster or finishes
- Loose tiles or coping stones
- Movement or subsidence of the wall
- Water leaks due to disturbed flashing or seals
Responsibilities of the Building Owner
The building owner—the person carrying out the work affecting the party wall—is responsible under Section 7(2) of the Act to cover any damage caused.
This means they must:
- Repair damage or compensate financially
- Pay for any surveyors needed to assess the damage
- Fulfil these obligations even if all notices and consents were correctly obtained
Repair or Compensation: The Neighbour’s Choice
Under Section 11(8) of the Act, the adjoining owner can choose between having the building owner repair the damage or receiving money to carry out repairs themselves.
This option helps avoid disputes, especially if the neighbour prefers their own contractors or doesn’t trust the building owner’s repairs.
The Role of Party Wall Surveyors
If neighbours cannot agree on responsibility or compensation, the Act allows appointing surveyors to resolve disputes:
- Both parties may agree on a single surveyor, or
- Each appoints one, with a third surveyor brought in if necessary
These surveyors produce a Party Wall Award, a legally binding document that:
- Identifies the extent and cause of damage
- Specifies financial responsibilities
- Includes condition reports before and after work
- Details necessary repairs or compensation payments
Either party may appeal the Award in court within 14 days; otherwise, it is binding.
Consequences of Skipping Party Wall Notice
If the building owner starts work without serving notice as required and damage occurs, the neighbour may have legal claims outside the Party Wall Act for:
- Trespassing
- Nuisance
- Negligence
They could seek court orders to stop work, recover damages, or force repairs, which may lead to costly legal action.
Security for Repair Costs
Section 12 enables the adjoining owner to request financial security before work starts, especially if the planned works are complex or risky, or if there are doubts about the building owner’s ability to pay.
This security—often held in a bonded account or escrow—ensures funds are available for any needed repairs. Without it, the project cannot proceed until the issue is settled.
Shared Use of the Party Wall
When the party wall supports both properties, repair costs are typically divided based on:
- How much each owner uses the wall
- Who is responsible for any defects
If only one side caused the damage (for example, through neglect), that party generally bears all repair costs.
Surveyor and Related Fees
Costs related to surveyors and damage assessments usually fall on the building owner, especially since they initiated the work. This includes fees for:
- Appointing and consulting surveyors
- Inspecting damage
- Preparing the Party Wall Award
If the neighbour requests additional improvements beyond damage repair (known as betterment), they may share the cost.
Insurance and Party Wall Damage
Most standard building insurance policies don’t cover damage caused by construction works on party walls. Building owners can take out specialist policies covering:
- Accidental damage during construction
- Damage to neighbouring properties
- Liability claims
Neighbours should also review their insurance, but their coverage may be limited without such specialist policies.
Enforcing Payment for Repairs
If the building owner refuses to pay as required by a Party Wall Award, the neighbour may:
- Enforce the Award through the County Court
- Obtain a judgment to recover costs
- Use court powers such as liens or bailiffs if necessary
It is important for building owners to comply promptly to avoid these legal consequences.
Important Points to Remember
- Neighbours can opt for repairs or a cash settlement.
- The building owner pays for damage caused by their work.
- Surveyors determine liability and costs through a binding Award.
- Failure to notify neighbours can lead to legal action beyond the Party Wall Act.
- Financial security may be required before work begins.
- Specialist insurance might be needed to cover construction-related damage.
- Surveyor fees typically fall on the building owner.
By understanding these rules under the Party Wall etc. Act 1996, property owners can better manage risks during construction, reduce conflicts, and ensure fair treatment if damage happens