Restrictive Covenants Explained: What Homeowners and Property Buyers Need to Know

Restrictive covenants are a common feature of property ownership in England and Wales, yet many homeowners and buyers are unaware of their impact until they encounter a problem. Whether you are purchasing a property, planning an extension, or considering alterations to your home, understanding them is essential.

A recent Upper Tribunal decision, Hassan & Osman v Heath [2025] UKUT 242 (LC), highlights the importance of checking for restrictive covenants before carrying out building work. The property was subject to a restrictive covenant preventing alterations to the external plan or elevation of the dwelling. The owners wished to undertake a loft conversion and a ground floor extension, which would have breached the covenant. Following objections from a neighbouring owner, the homeowners applied to the Tribunal to modify the restrictions. The Tribunal allowed the ground floor extension but refused permission for the loft conversion. This shows that restrictive covenants can significantly affect development plans, even where planning permission has been granted.

What Is a Restrictive Covenant?

A restrictive covenant is a legal obligation that limits what a property owner can do with their land or property. It is usually imposed by one landowner for the benefit of another and is designed to protect the character, value, or use of neighbouring land.

Importantly, they generally attach to the land itself, meaning they can continue to affect future owners for many years after they were originally created.

Common Examples

Common examples include:

• Restrictions on building extensions or making alterations.
• Prohibitions on using a property for business purposes.
• Restrictions on keeping livestock.
• Requirements relating to specific building materials.
• Limitations on erecting additional structures.
• Restrictions on installing satellite dishes or other external equipment.

The effect of a covenant will depend on its precise wording, so it is important to review the title documents carefully.

Should You Buy a House With Restrictive Covenants?

Restrictive covenants are very common and, in many cases, should not prevent you from purchasing a property.

However, before proceeding with a purchase, it is sensible to consider:

• Your intended use of the property.
• Whether you plan to build an extension or loft conversion.
• Whether you intend to make significant alterations.
• Whether there are any existing breaches of covenant.

For example, if you are planning a substantial extension, you should check whether any restrictive covenant could affect those plans before committing to the purchase.

The existence of a restrictive covenant is not necessarily a reason to walk away from a property. The key issue is whether the restriction is likely to impact your intended use and enjoyment of the property.

Can You Sell a House With a Restrictive Covenant?

Yes. A restrictive covenant does not prevent the sale of a property.

However, some buyers may be concerned if the restriction could limit future development or alterations. Being aware and understanding their potential impact can help avoid delays during the conveyancing process.

How Can I Find Restrictive Covenants on My Property?

Restrictive covenants are usually recorded in the title documents held by HM Land Registry.

If you are unsure whether your property is affected, you can:

• Obtain copies of your title register and title documents from HM Land Registry.
• Review conveyancing paperwork from when you purchased the property.
• Seek legal advice to understand the scope and effect of any restrictions.

The wording of a covenant can be crucial, so professional advice may be worthwhile where there is uncertainty.

Why Are Restrictive Covenants Used?

Restrictive covenants are frequently used where a landowner sells part of a larger area of land but retains neighbouring land.

The seller may wish to impose restrictions to ensure that the land being sold is not used in a way that could adversely affect the retained property. For example, in residential developments it is common to see restrictions requiring properties to be used solely for residential purposes.

The aim is often to preserve the character, appearance, and value of the surrounding area.

Are Restrictive Covenants Enforceable?

In many cases, restrictive covenants are enforceable. They can continue to bind successive owners of a property if they have been properly created and preserved. However, enforcement can be complex.

To enforce one, it is generally necessary to establish that the person seeking to enforce it has the benefit of the covenant. In some situations, such as where a single property has been divided into two plots, this may be relatively straightforward. In larger developments where land has changed hands multiple times, the position can be more complicated.

The fact that a covenant is decades or even centuries old does not automatically make it unenforceable. However, changes in the surrounding area and patterns of land use may affect the practical ability to enforce a restriction.

Each case will depend on its own facts and circumstances.

What Happens If You Breach a Restrictive Covenant?

Breaching a restrictive covenant can have serious consequences.

If a neighbour or another party can establish that they have the benefit of the covenant, they may be able to:

• Seek an injunction to stop works from continuing.
• Apply for an order requiring demolition or removal of unauthorised works.
• Claim damages for any financial loss suffered as a result of the breach.
• Claim compensation for any reduction in the value of their property.

These risks make it important to investigate any restrictive covenants before carrying out development or alterations.

Can Restrictive Covenants Be Removed or Modified?

In certain circumstances, restrictive covenants can be modified or discharged.

One option is to apply to the Upper Tribunal under Section 84 of the Law of Property Act 1925. The Tribunal has the power to modify or remove them where particular statutory grounds are satisfied.

The decision in Hassan & Osman v Heath provides a recent example of the Tribunal exercising this jurisdiction by allowing part of the proposed development while refusing other aspects of it.

Another possible solution may be restrictive covenant indemnity insurance. This is an insurance policy that can provide protection against potential claims arising from a breach of covenant.

Indemnity insurance may be useful where:

• A mortgage lender requires protection.
• There is concern about a historic breach.
• Additional reassurance is sought before a sale or purchase.

Whether insurance is available will depend on the specific circumstances.

Planning Permission: An Important Distinction

A common misconception is that obtaining planning permission removes the need to consider restrictive covenants.

The Hassan & Osman v Heath case serves as a reminder that planning permission and restrictive covenants are separate legal issues. Planning permission confirms that a development is acceptable from a planning perspective, but it does not override private property rights or remove restrictive covenants affecting the land.

As a result, homeowners should always investigate title restrictions before commencing any works, even where planning permission has already been granted.

Practical Tips for Homeowners

Before carrying out any alterations or development works, consider the following:

• Check your title documents for restrictive covenants.
• Obtain legal advice if you are unsure whether a covenant affects your plans.
• Do not assume that planning permission overrides a restrictive covenant.
• Consider the potential impact of proposed works before incurring significant costs.
• Explore options for modification or indemnity insurance where appropriate.
• Address any covenant issues early to avoid delays and disputes.

Legal Advice

Restrictive covenants are an important aspect of property ownership and can significantly affect what homeowners are permitted to do with their property.

The recent decision in Hassan & Osman v Heath demonstrates the importance of identifying and addressing restrictive covenants at an early stage. Obtaining specialist legal advice before starting any work can help avoid costly disputes and ensure that your plans proceed with confidence.

For advice on restrictive covenants and other property matters, please contact our Property team.

Telephone: 01707 329333
Email: law@crane-staples.co.uk

We look forward to hearing from you.