Can Our Neighbour Claim Compensation For Loss of Value to His Property?

Question

We have served a Party Wall Notice on our neighbour as we are proposing to build a small single storey rear extension. It does not require planning permission (permitted development) but it may require foundations which go into our neighbour’s garden. He has acknowledged the notice and not consented to the work going ahead. He has a number of valid points which we would be happy to agree with (e.g. restoring the fence etc) but he also included the following objection:

“due to the requirement to seek professional clarification as to the possible impact on the resale value of my property in direct response to the proposed works as well as any other undesirable effect upon my property and grounds from the proposed works.”

Does this mean we will have to pay him compensation for any potential drop in value of his house or compromise our design until he is content with the work to continue?
If we have the cost of the party wall surveyors and compensation to pay, it brings into question whether our small extension (15m2) is financially viable.

Answer

There is no provision for compensation for the loss in value to an adjoining owner’s property in the Party wall Act.

If your neighbour has not consented and 14 days have passed since you served the notice then he must appoint a surveyor. If he doesn’t appoint a surveyor then you will have to write to him and request that he does so within a further 10 days or you will make the appointment on his behalf.