Security for Expenses Deposit Providers (2025

If you need to deposit Security for Expenses under the Party Wall Act while you carry out construction works, you've come to the right place - we round up the options for you to consider when it comes to choosing a provider for your security for expenses / party wall escrow.

Choosing your Security for Expenses deposit firm

Choosing your supplier is important - you may wish to check a few things before engaging with one of them, including what each supplier provides for the following:

How much do the arrangements cost?

All Party Wall Act Security for Expenses deposit providers (apart from the Security for Expenses Scheme) will charge you a fee. This fee will often include elements for compliance, for an escrow agreement, and some will also charge a percentage of the amount being deposited.

Where is the security held?

As far as we are aware, no banks offer security for expenses deposits directly. This means that all providers deposit your expenses at an underlying bank. In practical terms, therefore, you might be taking a risk on the underlying solvency of the bank when you make your deposit.

Are the funds segregated and safeguarded?

Segregation means 'kept apart from' the supplier's own operational funds. Safeguarding means that the funds are not used for anything by the bank that is holding them and they are kept available to the depositor in the event of the supplier's insolvency.

While all agents, in practice, will segregate funds, not everyone is required to safeguard funds. This means you will wish to enquire as to the safeguarding arrangements in place (including seeing any terms and conditions or safeguarding letter) to ensure that in the event that your supplier becomes insolvent while you are carrying out your works, your deposit remains available to be returned to you at the end.

Are there any hidden costs?

Do the fees you have been quoted include, for example, all bank transfers, any changes made to your party wall award, new surveyors, compliance arrangements, etc?

What are the terms and conditions?

What are the rules governing your deposit? Are they clear, concise and easy to understand? Do they contain jargon or terms that feel unnatural or inconvenient? Do they offer a simple, low-cost dispute resolution procedure in the event that you have an issue?

Security for Expenses Scheme

The independent Security for Expenses Scheme was set up in early 2025 to provide a free alternative to the existing suppliers. We are run by DOS & Co., an experienced escrow agent who has already been carrying out Party Wall Escrow services for many years, but as a standalone scheme with one singular purpose: free, safe security for expenses deposits for all.

Free of charge.

The Security for Expenses Scheme carries no account fees. There are no hidden charges for compliance, due diligence, changes to your bank account, bank charges, percentages of the Security sum, or the like. Our accounts are 100% funded by the interest, if any, we receive on the Security while we are holding it.

The only time we may charge you a fee is if we are required to participate in any dispute (the 'dispute fee'). This is because we have based our free service on a known scope of work and amount of time and resource which relates specifically to the operation of the account under these standard rules. You can read more about this on our Scheme Rules.

Held at the Bank of England.

Under the Security for Expenses Scheme your security is held liquid and unencumbered at the Bank of England. It doesn't get any safer than this, but you will take additional comfort from the fact that the funds are both segregated and safeguarded there.

Segregated and Safeguarded.

Your security is segregated (kept separate from our own operational funds). It is also safeguarded (not used by us, or our bankers) and simply sits there, in cash, liquid and unencumbered at the Bank of England, in an account that only contains your security for your specific Party Wall Award.

No hidden costs.

Our cost base is simple - we don't charge any fees at all unless there is a dispute that we are required to become involved with. You can read more about this on our Scheme Rules.

Simple, clear Scheme Rules

There are only 6 rules to our Scheme, and most of the contents relate to the mandatory compliance checks that we are required to carry out as a registered supplier of payment/escrow services in the UK.

What's really important about these Scheme Rules, however, is that in the (very) unlikely event of a dispute, we have agreed to a low-cost expedited arbitration agreement - you can get your funds back quickly and cheaply, without having to go to court.

Fast account opening, 24/7

Through our innovative Security for Expenses Portal, you can open your deposit account at any time of day or night. The first time you use us, you'll need to complete our mandatory compliance checks. Thereafter, you can open an account by simply uploading a Party Wall Award. It's literally that easy.

Security for Expenses by dospay

dospay is another service operated by DOS & Co. It is designed for more complex or higher-value escrow arrangements. They also provide Party Wall Escrow services, but they provide them on bespoke terms and conditions, and those accounts are not free of charge. In the event you don't meet the eligibility requirements of the Scheme Rules, or you would like to negotiate a change to the terms and conditions of our service, you can request a quote on dospay's website for your exact requirements.

RICS Surveyors

RICS Surveyors are able to open client accounts to hold security for expenses, but they are only allowed to do so if they are one of the surveyors appointed under the Act and named in your Party Wall Award. We compare our service to theirs here (this is is provided in good faith based on the information available on their websites at the end of December 2024 - you will need to check that our comparison remains accurate and up to date).We compare our service to theirs here (this is is provided in good faith based on the information available on their websites at the end of December 2024 - you will need to check that our comparison remains accurate and up to date).We compare our service to theirs here (this is is provided in good faith based on the information available on their websites at the end of December 2024 - you will need to check that our comparison remains accurate and up to date).

Generally-speaking, neither neighbour is particularly comfortable about the other's surveyor holding the funds - while surveyors are subject to professional rules of conduct, and can be expected always to act in an appropriate manner, there is at least the outside risk of a possible perception of potential bias. With free accounts available through this Scheme, there seems little reason to take such a risk.

Other third-party providers

We are aware of other third-party security for expenses deposit providers:

Security for Expenses Ltd

Security for Expenses Ltd is an independent third-party supplier where you can deposit security for expenses and open other related accounts. We compare our service to theirs here (this is is provided in good faith based on the information available on their websites at the end of December 2024 - you will need to check that our comparison remains accurate and up to date).

Riverside Escrow

Riverside Escrow is affiliated with the law firm Herrington Carmichael LLP and they also provide the ability to accept deposits of security. We compare our service to theirs here (this is is provided in good faith based on the information available on their websites at the end of December 2024 - you will need to check that our comparison remains accurate and up to date).

Elemental CoSec

Elemental CoSec advertises Party Wall Escrow on its website. We compare our service to theirs here (this is is provided in good faith based on the information available on their websites at the end of December 2024 - you will need to check that our comparison remains accurate and up to date).

--Peter Hillyard

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