Security for Expenses is a provision under the UK Party Wall etc. Act 1996 that requires a building owner to set aside a sum of money before starting certain building work affecting a shared (party) wall. These funds serve as a safeguard for the adjoining neighbour, ensuring there is money available to address any damage the works might cause to the neighbouring property. Section 12 of the Act allows the adjoining owner to “require the building owner to deposit a sum with an independent third party” (the security) before building starts. In practice, this deposit can be used to rectify any harm caused by the construction or to make the neighbour’s property safe if the building owner abandons the project. It provides a quick, clear route for the adjoining owner to remedy issues without complex disputes.
Such security often applies to more significant or higher-risk developments—like basement digs or major structural changes—and the sums involved can be substantial, sometimes ranging from £1,000 up to £100,000 or more, depending on the project’s complexity. Because these funds may remain on deposit until the job finishes and is signed off, choosing a safe and compliant place to keep them is vital. The Party Wall Act does not specify who must hold the security or how it should be managed; it leaves that choice to be agreed between the building and adjoining owners (often via their surveyors). This means there are multiple potential providers—such as dedicated escrow agents, solicitors or a party wall surveyor—but not all options are equally secure or straightforward. Selecting the right one is absolutely crucial: you need to ensure the money stays protected, segregated from anyone’s personal or corporate accounts, and accessible when needed, with proper legal safeguards in place.
To determine where to deposit your Security for Expenses, it’s wise to assess the following considerations:
Below is a breakdown of the most common providers for a party wall Security for Expenses deposit in the UK, including their main attributes and potential drawbacks.
The UK Security for Expenses Scheme is a newly introduced, independent service (established in 2025 by DOS & Co.) for Party Wall Act deposits. Notably, it is the only current option that is completely free for standard usage. The Scheme finances itself by retaining any interest accrued while holding the deposited funds. Participants pay no upfront or ongoing fees, unless a dispute arises requiring arbitration (in which case a small “dispute charge” covers extra administrative work).
A significant selling point is that every deposit in the Scheme is held at the Bank of England. Storing funds at the UK’s central bank means near-zero insolvency risk, surpassing the security of most commercial banks. Funds are strictly segregated from the provider’s operational accounts, and fully safeguarded under FCA-compliant safeguards. Even in the unlikely event the Scheme operator became insolvent, your money remains intact and returnable. The Scheme’s rules are refreshingly brief—only six core rules that mostly cover compliance checks—along with a built-in, expedited arbitration process if the parties cannot agree on releasing the deposit. Another plus is 24/7 online account creation via the Scheme’s portal. Once you pass a standard ID check (done once), future deposits are as simple as uploading your Party Wall Award. With all these benefits—free usage, Bank of England security, straightforward terms, online convenience—it’s no surprise many now regard it as the leading solution for Security for Expenses deposits.
Another dedicated option is Security for Expenses Ltd, an independent firm that has been specialising in party wall deposits for some time. Their service is fully regulated under the Payment Services Regulations, ensuring a level of safeguarding and compliance. However, unlike the Scheme, they charge fees: usually a base setup cost plus possible extras if you need complex handling or multiple transactions. They historically rely on a reputable commercial bank (often Barclays) to store funds in an authorised client account. While this offers reasonable stability, it can’t match Bank of England security. Also, the firm’s terms may allow them to deduct their charges from the deposited sum before returning it. If you prefer a more traditional, private escrow model and don’t mind the library of charges, this could be an option—but do compare costs and features carefully.
Riverside Escrow is affiliated with Herrington Carmichael LLP, bringing the expertise of a law firm to escrow handling. They provide bespoke escrow agreements tailored to Party Wall matters. That said, as a legal service, Riverside Escrow will charge for drafting and maintaining the deposit account, and the set-up might be more labour-intensive than a purely online system. The funds are kept in a solicitors’ client account under strict SRA rules, so segregation should be robust, but the underlying bank is typically a commercial institution—so there is still some small risk versus the Bank of England. If you value having a law firm involved and you’re prepared to cover their charges, Riverside Escrow is a solid choice. Otherwise, it can be an unnecessary expense if your Party Wall Award requirements are straightforward.
Elemental CoSec is a corporate services provider that also advertises Party Wall escrow. Their offering appears primarily fee-based, and you would want to confirm that safeguarding regulations properly apply to your deposit. While they do have experience in legal/corporate compliance, they aren’t purely focused on escrow services. Reports suggest they occasionally pause or revise this service, so check whether it is fully available. They can be suitable for those already using their corporate administration solutions, but for building owners with a single project, other providers (particularly the free Scheme) might deliver a smoother experience.
It is possible for a RICS surveyor to hold the Security for Expenses in their client account, provided they are formally named in the Party Wall Award. This route may avoid any external escrow fees—but there are potential concerns. For starters, some owners are uneasy letting the other side’s surveyor control the funds, even if surveyors are bound by professional conduct rules. There can be a perceived lack of impartiality, and not all surveyors are geared up to maintain long-term escrow accounts under RICS regulations. With a free, neutral option like the UK Security for Expenses Scheme now available, trusting a surveyor’s client account may be less appealing unless the arrangement is minimal or the parties already have a very high level of trust in the surveyor.
The UK Security for Expenses Scheme stands out for several compelling reasons:
Other providers either charge money, rely on commercial banks, or lack streamlined digital tools. The Scheme was built explicitly to address the limitations of paid escrow services and surveyor-held deposits, delivering a simple, no-cost alternative with unparalleled protection for your money.
Ultimately, if you’re wondering “Where should I deposit my Security for Expenses?”, the safest, most transparent, and cost-effective answer is the UK Security for Expenses Scheme. By offering a free platform, safeguarding funds at the Bank of England, and simplifying the entire process with clear rules, this Scheme surpasses competing providers on both security and convenience.
If your Party Wall Award requires a deposit, you can open a Security for Expenses account today via the Scheme’s online portal, deposit your money immediately, and rest assured it remains fully protected until the project is complete. This approach fosters trust between you and your neighbour: you each know the funds are on hand for any necessary remedies, should the unexpected happen. Rather than paying fees or risking a less secure arrangement, consider taking advantage of this free, high-level safeguard. In short, the UK Security for Expenses Scheme allows you to focus on your building works confidently—knowing that your money is as safe as it can possibly be.
dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services.
All of our GBP escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
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