Damage to a neighbour’s property during works: how claims work

Most party wall work causes no damage at all, and where damage does occur it is usually cosmetic: hairline cracks in plaster, a cracked tile, a sticking door. Occasionally it is more serious. Either way, the Act gives the neighbour clear rights and gives both sides a route to settle it without going to court.

The legal framework

• Compensation for loss or damage. Section 7(2) says the building owner “shall 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 covers physical damage and can extend to other losses such as reasonable costs of temporary accommodation if a room becomes unusable.
• Making good. Rights under section 2(2)(a) (where not needed for defect), (e), (f), (g) and (h) are exercisable subject to making good all damage occasioned to the adjoining premises and their internal furnishings and decorations (s.2(3), (4) and (5)). For flashings under (j), the duty is to make good damage to the wall (s.2(6)).
• Payment instead of repairs. Section 11(8) lets the adjoining owner require that the cost of making good be determined under section 10 and paid to them, instead of the building owner’s contractor doing the work. Many neighbours prefer this so they can use their own decorator.
• No unnecessary inconvenience. Section 7(1) prohibits exercising rights in a way or at a time that causes unnecessary inconvenience.
• Protection. Section 7(3) requires hoarding, shoring or temporary construction where land or buildings are laid open.
• Ordinary liability preserved. For excavation, section 6(10) confirms ordinary liability for injury caused by the work is not removed.
• Disturbance allowance. Where premises are laid open under section 2(2)(e) (demolish and rebuild), a fair allowance for disturbance and inconvenience is payable (s.11(6)).

How damage claims are dealt with

Where there is an Award

The Award will normally include a Schedule of Condition and provisions for damage. If damage occurs, the adjoining owner tells their surveyor (or the Agreed Surveyor). The surveyor(s) inspect, compare with the Schedule, decide whether the damage was caused by the work, and determine either the scope of repair or a payment. That determination is usually made in an addendum Award. The reasonable costs of doing so are normally paid by the building owner (s.10(13)).

Where the neighbour consented

If the neighbour consented to the notice there is no dispute and no surveyor appointed. If damage then occurs and the owners cannot agree, a dispute arises at that point, and surveyors can be appointed under section 10 to resolve it. This is one reason the FPWS-recommended option of consent with a Schedule of Condition is so useful: it keeps things simple while preserving the evidence. See Schedules of Condition.

Where no notice was served

The neighbour’s remedies then lie mainly in ordinary law, such as nuisance, trespass or negligence, although serving notice late can bring the remaining work and often the damage back within the Act’s process. See starting work without notice.

What surveyors look for when assessing damage

• Comparison with the Schedule. Is the crack new, or recorded already? Has an existing crack widened?
• Location and pattern. Cracks along the junction with the party wall, at the ceiling line above new beam bearings, or diagonal cracks from opening corners near excavation are typically consistent with the work.
• Timing. Did the damage appear during or shortly after notifiable work?
• Other causes. Seasonal movement in clay soils, thermal movement, settlement of new plaster, or the neighbour’s own works.
• Severity. Hairline cracks are filled and redecorated. Wider cracks, distortion or water ingress may need an engineer.
• Extent of redecoration. Making good a crack often requires redecorating the whole wall or room to match. A fair settlement allows for that.

Common types of damage

Practical steps for building owners

• Agree a Schedule of Condition before work, even if the neighbour consents.
• Make sure your contractor is insured for damage to neighbouring property.
• Require hand tools or controlled methods on the party wall where practical.
• Respond quickly if the neighbour reports damage; a prompt, fair repair maintains goodwill.
• Do not argue about pre-existing defects without checking the Schedule first.

Practical steps for adjoining owners

• Read the Schedule of Condition when you receive it and point out anything missed.
• Photograph any new damage, with dates, as soon as you notice it.
• Report it in writing to the building owner and to the surveyor(s).
• Decide whether you want repairs done by the builder or a payment under section 11(8).
• Allow reasonable access for inspection.

Worked example (illustrative)

Illustrative only. Not a real case, and the figures are for explanation only.

During a loft conversion, new steels are installed into the party wall. Two weeks later the neighbour finds a new crack along the ceiling of their bedroom and another above the landing door. The Agreed Surveyor inspects, compares with the Schedule of Condition, and confirms the bedroom crack is new and consistent with the steel installation, while the landing crack was recorded before work started but has widened. The surveyor determines that both should be repaired and the bedroom and landing walls redecorated. The neighbour chooses payment under section 11(8) rather than the builder’s decorator, and the surveyor determines a sum based on a reasonable decorator’s cost, recorded in an addendum Award.

At a glance

Damage that is not the work’s fault

Not every crack that appears during a neighbour’s works was caused by them. Surveyors must be impartial and will consider alternative explanations: seasonal shrinkage and swelling of clay soils, thermal movement in long walls, drying shrinkage in new plaster, the adjoining owner’s own alterations, or defects already recorded in the Schedule. Where the cause is genuinely uncertain on a significant claim, an engineer’s opinion may be needed. A fair outcome depends on good evidence on both sides, which is why dated photographs and a thorough Schedule matter so much.

Sources and further reading

• Party Wall etc. Act 1996, section 2: Repair etc. of party wall: rights of owner (legislation.gov.uk)
• Party Wall etc. Act 1996, section 6: Adjacent excavation and construction (legislation.gov.uk)
• Party Wall etc. Act 1996, section 7: Compensation etc. (legislation.gov.uk)
• Party Wall etc. Act 1996, section 10: Resolution of disputes (legislation.gov.uk)
• Party Wall etc. Act 1996, section 11: Expenses (legislation.gov.uk)
• The Party Wall etc. Act 1996: explanatory booklet (GOV.UK)

This guide is general information on the law in England and Wales, written from our surveyors’ practical experience. It is not legal advice; for a specific dispute, take advice on your own facts.

Sources: Party Wall etc. Act 1996 (legislation.gov.uk) · The Party Wall etc. Act 1996: explanatory booklet (GOV.UK). Last reviewed 27 October 2026. General guidance on the law in England and Wales, not legal advice.