Should I Buy a House with a Restrictive Covenant

Buying a house with a restrictive covenant can raise understandable concerns. These legally binding rules, written into the deeds or title of a property, place limits on what you can or cannot do with the home or land. While many covenants are historical and rarely enforced, others remain active and can have a real impact on your freedom as a homeowner or developer. Understanding what a restrictive covenant is, how it may affect your plans, and what to do if you find one is essential before committing to the purchase.

This guide explains what restrictive covenants are, who they affect, how to assess their impact and what to consider before buying a property that includes one.

What is a restrictive covenant?

A restrictive covenant is a legal clause that restricts the use or development of a property. These are commonly used by developers, freeholders or former landowners to control what can happen to a property in future, even after it is sold. They are registered on the title at HM Land Registry and ‘run with the land’, meaning they stay in place regardless of who owns the property.

Common examples include restrictions on building extensions, keeping animals, running a business from home, altering the external appearance or subdividing the land. Some covenants apply to entire estates and are intended to preserve the character of a neighbourhood or development.

Who do restrictive covenants affect?

Covenants affect a wide range of property buyers including homeowners, self-builders, landlords and developers. If you are planning to live quietly and not change anything about the property, many covenants will not affect you at all. However, if you plan to extend, convert, rent out or significantly alter the property, you must check whether any restrictions could interfere with your plans.

Buyers of older properties may find covenants that were written over 100 years ago, and while many are obsolete, others are still enforceable. New-build homes often include modern restrictive covenants imposed by the developer or management company to control changes across the estate.

Are restrictive covenants legally enforceable?

Yes, restrictive covenants are enforceable under UK law if they meet certain legal tests. The person or entity with the benefit of the covenant must still exist and have a connection to the land. Enforcement usually involves civil legal action through the courts or the Lands Chamber of the Upper Tribunal.

For example, if a covenant prohibits extensions, a neighbour with the benefit of the covenant could apply for an injunction to stop building work or claim damages. This is rare, but not unheard of. Before enforcing a covenant, the other party must show that it was intended to protect their land and that a breach would cause them harm.

How do I know if a property has a restrictive covenant?

Your solicitor will check for restrictive covenants as part of the conveyancing process. The title register and title plan held by HM Land Registry will show if any covenants apply. Your solicitor should explain each one and advise whether it is likely to affect your intended use of the property.

If the wording of a covenant is unclear, or if you plan to do something that may breach it, you should seek legal advice early on. You may also need to consult a planning specialist or apply to modify or discharge the covenant before making changes to the property.

Can a restrictive covenant be removed?

Restrictive covenants can be removed or modified in some cases. You can apply to the Lands Chamber of the Upper Tribunal to have a covenant discharged if it is outdated, unreasonable or no longer serves a practical purpose. This is a legal process that involves notifying any parties with an interest and showing that the covenant is no longer relevant or necessary.

Alternatively, you can contact the person or body with the benefit of the covenant and request written consent or a formal deed of release. Some developers or landowners may agree to this in exchange for a fee.

What are the risks of ignoring a covenant?

Breaching a restrictive covenant without permission carries serious risks. If enforced, you may be forced to undo any unauthorised work, pay damages or face court costs. Even if the covenant is old and appears unenforced, it can still pose a problem when selling the property in future.

Some buyers choose to take out indemnity insurance to protect against the risk of enforcement. This policy provides financial cover if a breach is discovered and legal action is taken. However, indemnity insurance is not a guarantee and cannot be used if the beneficiary of the covenant has already been contacted or made aware of a planned breach.

Should I still buy a house with a restrictive covenant?

A property with a restrictive covenant is not automatically a bad investment. Most covenants are harmless, especially if you have no plans to alter the property. However, if the covenant limits something important to you, such as extending, converting or renting it out, then you must take it seriously.

The key is to understand the nature of the covenant, its enforceability and whether it poses a practical obstacle to your goals. With the right legal advice and a clear view of the restrictions, you can make an informed decision that avoids future conflict.

Conclusion

Buying a house with a restrictive covenant is a common situation in the UK, and in most cases it does not prevent people from enjoying or improving their homes. That said, it is important to understand exactly what the covenant restricts, who has the power to enforce it and what steps you may need to take if you want to modify or remove it. With careful due diligence, appropriate insurance and expert legal guidance, you can confidently decide whether the property is right for you.