Commercial building owners wishing to make alterations to their premises should bear in mind their legal rights and obligations under the Party Wall Act 1996. The same goes for adjoining owners whose neighbours are carrying out building works.
If your premises or investment property share a wall or other structure with another property – be it in a terraced or semi-detached house or a leasehold property, and building work is due to take place that affects the party wall, there is a statutory process that must be followed. A word of caution: This is a complex area of law and it is a good idea to seek professional help from an independent party wall surveyor to make sure you are doing all that is required to comply with the law.
What is the Party Wall Act?
The purpose of party wall legislation is to protect the property interests of all owners during construction works. This includes the building owner who wants to carry out building works on his property and all adjoining owners whose property could be damaged as a result of works carried out by their neighbour.
To manage the situation and provide a mechanism for resolving differences and disputes in a quick and cost-effective way, the Party Wall Act sets out specific procedures that must be followed. These involve notifying adjoining neighbours and allowing them to comment, so that the works can be undertaken in a fair and reasonable manner..
Specifically, the Party Wall Act applies to three broad types of ‘notifiable’ building works:
- Section 1 of the Act deals with the construction of a new wall on or astride a boundary that hasn’t hitherto been built on. Enlarging the building by way of an extension would be a good example.
- Section 2 of the Act deals with alterations to an existing party wall, including repairs, demolitions and reconstructions. Loft extensions and damp proof course insertions are a case in point.
- Section 6 of the Act deals with excavations, such as when digging for footings, foundations or drainage, that are lower than the neighbouring structure. Basement extensions are a good example.
Each of these sections has its own requirements as to how adjoining neighbours must be notified. What’s more, it is possible for building works to fall into more than one category. To provide some relief, it should be pointed out that minor, non-structural works on a party wall, such as electrics, plastering or drilling holes for shelving etc are not subject to party wall legislation.
What’s the Process?
The building owner must serve notice on adjoining owners before works are due to start that fall under Sections 1, 2 and 6 of the Party Wall Act. Sections 1 and 6 have a notice period of one month, Section 2 requires at least two months’ notice. It is highly recommended that you appoint an experienced party wall surveyor to act on your behalf – it’s best practice but there’s no legal requirement to do so.
On receipt of the notice, adjoining owners have the option to consent to the works, or dissent. If written consent is provided within 14 days, the proposed works can go ahead. In straightforward cases such as this, there is usually no need to appoint a surveyor beyond the serving of notices.
If no response is given, or the adjoining owner actively dissents, the parties are deemed to be in dispute. At this point, either an agreed surveyor must be appointed, or each party can appoint their own surveyor.
The appointed surveyor(s) will typically prepare a Schedule of Condition to record the condition of the adjoining owner’s property in writing and with photographic evidence, before works start. This serves as a benchmark against which to assess any future claim for compensation.
The appointed surveyor(s) will then make a legally binding Party Wall Award which sets out all the parties involved and the rights and duties of the building owner. It also specifies the notifiable works, the manner in which these are to be undertaken along with timescales.
In the event of two individually appointed surveyors being unable to agree on a way forward, the matter will be referred to a third surveyor who will make the Award instead. The Award is then served on all affected property owners, and the proposed works can start.
For further information on how to comply with the Party Wall Act, the Royal Institution of Chartered Surveyors (RICS) has published a detailed guide about party wall legislation that is available to download here.
What are the Risks of Ignoring the Party Wall Act?
It is crucial to understand that not bothering to serve notice on your neighbours can land you in very hot water indeed. The same applies to incorrectly served notices or missed deadlines, as well as counting on verbal assurances given by your neighbour. Unfortunately, there are penalties for non-compliance and your adjoining owner could take out an injunction against you to stop any unauthorised works from taking place (or continuing if the project has already begun). “The resulting expense, disruption and possible contractual issues caused by having to stop work can be debilitating, hence the importance of complying with the legislation from the outset,” warns one expert in the field.
That having been said, under the protection of the Act, adjoining owners cannot unreasonably delay or frustrate your building plans beyond what is set out in the Act. Without a Party Wall Award, however, you are on the back foot when it comes to your neighbour’s right. They could question every aspect of your project including the quality of your contractor, the location of the skip, noise nuisance, dust and mess from the building works and more, interfering with your plans and causing extra delay and cost.
Far from being unwelcome red tape, the legislation should work in your favour. Serving notice under the Act protects you against any exaggerated claims from your neighbour further down the lane. The Schedule of Condition documents the state of repair of the adjoining property before building works begin, giving an accurate picture of any damages that may have been caused by your building works and assess the claim.
