Restrictive covenants: what they are and why you shouldn’t breach them 

Buying a home is one of the most exciting milestones, but there are major things to watch out for, such as restrictive covenants, that could impact what you’re allowed to do to your own home.  

We explore restrictive covenants, why they exist, why you should avoid breaching them, and what to do if this happens.  

What are restrictive covenants? 

When you buy a property, you may find binding conditions in the title deeds dictating what a purchaser can and cannot do with their property and land. These are known as restrictive covenants.  

Restrictive covenants may prevent you from altering a property, prohibit new buildings from being built, or prevent businesses from operating on it.  

They may be passed down with the land, so even when it’s sold to new owners, any restrictive covenants will still apply. 

What’s the difference between positive and negative restrictive covenants? 

Restrictive covenants, also known as negative covenants, restrict the use of land and property, such as not allowing any structures to be built. 

Positive covenants state certain actions must be taken, usually involving spending money. These could include using a specific style of windows and doors or maintaining fences, structures, or your garden.  

Why do restrictive covenants exist? 

Buying a property and discovering that you cannot alter it can be frustrating, so why do they exist? 

Often, restrictive covenants are used to prevent work from being undertaken that could negatively impact a neighbourhood by making it less uniform. 

For example, a restrictive covenant could ban using satellite dishes, keeping livestock, or implementing anything that impacts any scenic views.  

They could also be used to protect the value of a property or reduce any potential damage. 

What kind of buildings have restrictive covenants?  

Any building can have restrictive covenants, whether a new build or an older property. 

While the age of a covenant doesn’t affect its validity, some may be so old they can’t be enforced due to ambiguous language, the original owner being hard to find, or because it’s historically obsolete.  

How can I find out about any restrictive covenants? 

You can look for any restrictive covenants on the title deeds or title register. 

When you’re buying a property, you should look into whether there are any covenants or ask your solicitor, who must flag any. 

Once you sign the deeds, you’ll own the property and be responsible for any covenants. 

If you are unaware of all the covenants and this is due to your solicitor, you can complain to the Legal Ombudsman, who can award you up to £50,000. 

If you’re entitled to more than the maximum amount due to breaching the covenant, it’s worth getting advice on whether you should seek legal action.  

How does a restrictive covenant affect me? 

Restrictive covenants apply to all owners, not just the original owner or developer. 

So, any must be flagged before you sign the deeds so you’re aware of any restrictive covenants that may be an issue.  

You should also make sure you query any restrictive covenants and understand who best to get in touch with. This is usually the current landowner who has the ‘benefit of the covenant.’ 

If any restrictive covenants are likely to impact the future value of the property, mortgage lenders may be less likely to offer you a mortgage.  

Can I remove a restrictive covenant?  

You can ask if a restrictive covenant can be removed if it affects your decision to buy.  

Alternatively, you can consider insurance to protect against financial losses if a breach of a restrictive covenant is enforced. 

It’s also possible to ask for retrospective consent for work. If this fails or is too expensive, you could apply to the Lands Chamber of the Upper Tribunal to change or eliminate a restrictive covenant. 

This can be expensive and time-consuming – especially if the beneficiary of the covenant challenges this and is successful. 

If you want to remove a restrictive covenant, it’s worth getting expert legal advice beforehand.  

Can I breach a restrictive covenant? 

You should not breach a restrictive covenant.  

Doing so could result in legal action, including a potential injunction to prevent you from making any changes. 

If you breach a restrictive covenant, you may also need to pay damages.  

What should I do if I breach a restrictive covenant? 

If you breach a restrictive covenant, either intentionally or not, you may have to do one of the following: 

• Pay a hefty fee, amounting to potentially thousands of pounds. 
• Reverse the work you’ve done that breached the restrictive covenant. 
• Face legal action. 

If you breach a covenant and it goes unchallenged for over a year, and then you sell, you may be able to get restrictive covenant insurance.  

Would any restrictive covenants impact me if I plan to sell my home? 

You should seek legal advice if you’re planning to sell your home as a solicitor can check the restrictive covenants, see if they’re enforceable, and determine whether you can get the relevant insurance.  

Restrictive covenant insurance, which can cost hundreds of pounds, can cover the liability of any breaches, including compensation, damages, legal and alteration costs, and any fall in the property value. 

However, you must have breached the restrictive covenant and not had any challenges or complaints for at least a year. 

One major benefit of this insurance is it can be given to future owners of the property in question.  

What should I do if I’m planning to renovate? 

You shouldn’t renovate your home if you breach a restrictive covenant in the process, as you may have to reverse any work, pay compensation, and/or face legal action. 

You could ask the Lands Chamber of the Upper Tribunal to change or remove a restrictive covenant, but this may not be successful and requires time and money.  

It’s a good idea to get advice about restrictive covenants before deciding on any legal action.  

Need help with your property goals? 

If you’re buying or selling property and need help finding a mortgage, Unbiased can quickly connect you to a qualified mortgage broker.