Restrictive covenants are legal rules that limit how a property can be used. They are often put in place to protect the character of an area or prevent certain activities on the land. If you’re buying, selling, or developing property, it’s important to understand how restrictive covenants affect your rights and what you can (or can’t) do. In this guide, we’ll explain what restrictive covenants are, how they work, and what steps you can take if you need to challenge or remove one.
What is a restrictive covenant on a property?
A restrictive covenant is a legally binding rule attached to a property that limits what the owner can do with the land or building. These restrictions are typically put in place to:
Protect the character of an area
Prevent certain types of development
Maintain property values
Ensure properties follow specific building or usage rules
Restrictive covenants are often added by property developers, local authorities, or previous owners to control how the land is used in the long term. Even after a property changes hands, these restrictions remain in place unless legally removed.
Why are restrictive covenants used?
Restrictive covenants are typically used to help:
Prevent developments that could reduce property values: For example, stopping a house from being converted into flats.
Maintain the character of an area: Ensuring homes in a neighbourhood follow similar architectural styles.
Protect green spaces and shared areas: Stopping land from being built on or altered.
Restrict business activities in residential areas: Preventing a house from being used as a shop or office.
Ensure properties meet specific building or usage rules: Controlling extensions, fences, or external designs.
Examples of common restrictive covenants
Different properties have different restrictions. Some common types include:
Building restrictions: Preventing homeowners from adding extensions, extra floors, or outbuildings.
Usage limitations: Stopping a residential property from being used for business purposes.
Architectural controls: Requiring homeowners to get approval before making changes to the property’s exterior.
Land use conditions: Prohibiting keeping livestock, commercial farming, or certain landscaping changes.
Shared access agreements: Restricting who can use driveways, pathways, or private roads.
💡 Key takeaway: If you're buying, selling, or developing a property, it’s essential to check for restrictive covenants to avoid unexpected limitations. If you need to challenge or remove a covenant, legal advice may be required.
What is a restrictive covenant agreement?
A restrictive covenant agreement is a formal document that sets out the specific restrictions applicable to a property. These agreements are legally enforceable and usually form part of the property’s title deeds. They are often put in place by property developers, landlords, or local authorities to preserve certain characteristics of an area.
👉 When in doubt, a restrictive covenant solicitor can help guide you on your rights and what is a fair agreement.
How does a restrictive covenant affect homeowners?
Homeowners affected by a restrictive covenant must adhere to the conditions set out in the agreement. This may mean:
Effect | Impact on homeowners |
|---|---|
Obtaining permission before making alterations | Homeowners may need formal approval before making changes such as extensions, renovations, or adding outbuildings. |
Limitations on business activities | If a property is restricted for residential use only, homeowners may not be able to operate businesses from their home, even if they work remotely. |
Maintaining property aesthetics | Some covenants require homeowners to uphold certain aesthetic standards, such as keeping a garden tidy or maintaining a specific exterior design. |
Restrictions on selling or subdividing property | Some covenants prohibit the division of land or resale of property for certain uses, which can impact marketability and future plans. |
Financial liabilities | Homeowners may face legal costs or compensation claims if they unknowingly breach a restrictive covenant. |
What happens if you breach a restrictive covenant?
If a homeowner breaches a restrictive covenant, several consequences can follow:
Legal action: The party benefiting from the covenant (e.g. a neighbour, property developer, or estate management company) may take legal steps to enforce compliance.
Injunctions: A court may issue an injunction requiring the homeowner to undo any unauthorised changes, such as demolishing an unapproved extension.
Financial penalties: Homeowners may be liable for damages or compensation if the breach has negatively impacted another party, such as reducing neighbouring property values.
Title complications: A breach may be recorded on the property title, making it difficult to sell, remortgage, or transfer ownership.
Retrospective consent issues: In some cases, homeowners may be able to apply for retrospective approval, but this is not always granted and may come with additional costs.
Compromise agreements: Some disputes over restrictive covenants can be resolved through negotiation, where the benefiting party may agree to remove or alter the covenant in exchange for compensation.
👉 Learn more in our complete guide to breaching restrictive covenants.
Can a restrictive covenant be removed?
If a homeowner breaks a restrictive covenant, there can be serious consequences—ranging from legal action to financial penalties. What happens next depends on who benefits from the covenant (such as a neighbour, property developer, or estate management company) and how the breach has affected them.
Here’s what you need to know:
✔ Legal action and court orders: The affected party can take legal action to enforce the covenant. If the court rules against the homeowner, they may be required to undo any unauthorised changes—for example, demolishing an unapproved extension.
✔ Financial penalties: If the breach has caused harm (such as reducing neighbouring property values), the homeowner may be ordered to pay compensation or damages.
✔ Title complications: A recorded breach can make it difficult to sell, remortgage, or transfer ownership of the property, as buyers and lenders may be hesitant to proceed.
✔ Retrospective consent: In some cases, homeowners may be able to apply for retrospective approval, but this is not always guaranteed and may come with additional costs.
✔ Compromise agreements: Some disputes can be settled out of court through negotiation. The benefiting party may agree to modify or remove the covenant in exchange for a financial settlement.
💡 Key takeaway: If you’re unsure whether you’ve breached a restrictive covenant, or if you need to challenge one, seeking legal advice from a property solicitor early can help you avoid costly disputes.
Will a restrictive covenant impact a house sale?
Unfortunately, yes, a restrictive covenant can impact the sale of a property in several ways. Every case is unique, though common issues we see crop up include:
Reducing buyer interest: Potential buyers may be discouraged if they feel the covenant restricts their ability to modify or use the property as they wish.
Delaying transactions: If a covenant’s terms are unclear, buyers may seek legal clarification, causing delays in the sale process.
Affecting mortgage approvals: Lenders may be hesitant to provide financing if a restrictive covenant imposes significant limitations on the property’s value or future use.
Negotiation hurdles: Buyers may request that the seller arranges for the covenant to be removed or modified before completing the purchase.
Additional legal costs: Sellers may need to provide documentation proving the covenant is no longer enforceable or has been formally discharged.
FAQ
What is a reasonable restrictive covenant?
A reasonable restrictive covenant is one that serves a legitimate purpose, such as preserving property values or preventing nuisances, without placing excessive restrictions on the homeowner.
Can you ignore a restrictive covenant?
Ignoring a restrictive covenant can lead to legal consequences, including court action and financial penalties.
Do restrictive covenants expire?
Some restrictive covenants may become unenforceable over time, especially if they have not been actively enforced or if the original purpose is no longer relevant.
Who enforces a restrictive covenant?
Restrictive covenants are typically enforced by the original developer, a management company, or neighbouring property owners who benefit from the restrictions.
Final thoughts
Restrictive covenants are an important consideration when buying, selling, or altering a property. Understanding their implications can help homeowners avoid legal disputes and ensure compliance with property regulations. If you are unsure about a restrictive covenant on your property, seeking legal advice is always recommended.
References
Restrictive covenants data from Gov.UK
Disclaimer: This article only provides general information and does not constitute professional advice. For any specific questions, consult a qualified professional.
