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

Even well-run projects can cause minor cracking next door. The Act sets clear rules on who is responsible and how it is put right.

JM

Written by James Metcalf AssocRICS, MFPWS

AssocRICSMFPWS

Party Wall & Residential Property Surveyor with 20+ years’ experience in surveying and property, covering Kent. Last reviewed 27 October 2026.

Short answer: The building owner must compensate adjoining owners and occupiers for any loss or damage resulting from work under the Act (section 7(2)), and for most section 2 works must make good all damage to the adjoining premises, furnishings and decorations (section 2(3)-(6)). The adjoining owner can choose to be paid the cost instead of having the builder do the repairs (section 11(8)). If the owners cannot agree what damage was caused or what it costs, the surveyors decide under section 10. A Schedule of Condition taken before work is the key evidence.

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

DamageTypical causeTypical remedy
Hairline cracks in plasterVibration, cutting in, beam installationFill and redecorate, or payment
Cracks along ceiling linePoorly packed beam bearings, loft workFill and redecorate; check packing
Debris in flue or hearthChimney breast removalClear and check flue
Damp or leaks at junctionPoor flashing, exposed wall not weatheredRepair weathering; repair internal damage
Damage to garden, paving, plantsAccess, scaffolding, excavationReinstatement or payment
Structural cracking or movementExcavation, underpinning, inadequate temporary worksEngineer’s assessment; structural repair

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

RightSource
Compensation for loss or damages.7(2)
Make good damage to premises, furnishings and decorationss.2(3)-(6)
Payment in lieu of repairss.11(8)
Disputes about damage settled by surveyorss.10
Fair allowance for disturbance (s.2(2)(e) work)s.11(6)

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

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.

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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.

Frequently asked questions

Who pays if party wall work damages my house?

The building owner. Section 7(2) requires compensation for any loss or damage resulting from work under the Act, and section 2 requires making good of damage for most party wall works.

Can I insist on cash instead of the builder doing repairs?

Yes. Section 11(8) allows the adjoining owner to require the cost of making good to be determined and paid to them instead.

What if we disagree about whether the work caused the damage?

The surveyors decide under section 10, using the Schedule of Condition and their inspection. If you consented and no surveyor was appointed, one can be appointed when the dispute arises.

Is there a time limit for reporting damage?

The Act does not set one for making good, but report damage promptly. The longer you wait, the harder it is to link it to the work.

Does the Act cover loss other than physical damage?

Section 7(2) refers to loss or damage. Depending on the facts, it can cover consequential loss such as reasonable costs caused by the work. The surveyors decide disputed claims.

What if the damage is serious?

The surveyors may require an engineer’s assessment and structural repairs. On larger projects the Award may already include monitoring and trigger levels to catch movement early.

Can I claim for damage if there was no notice?

Yes, under ordinary law, and you can ask the building owner to serve notice so the Act’s process applies to the remaining work.

Does my home insurance cover this?

Damage caused by the neighbour’s work is primarily the building owner’s responsibility. Check with your insurer before claiming, as they may pursue the building owner.

Does the Party Wall Act apply to your project?

Tell us about your project and a local qualified surveyor from our team will confirm which party wall notices you need and your fixed fee. Nothing to pay until the work is done.

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