What Buyers Should Know About Restrictive Covenants on Properties: Key Insights and Considerations

Buying a property is a major financial commitment, and restrictions in the title can affect what you do after completion. The average UK house price was £268,000 in March 2026, based on provisional official figures. Before you exchange contracts, it is sensible to understand whether the property is affected by any restrictive covenants.

A restrictive covenant may prevent you from extending the building, running a business from home or changing its appearance. It does not automatically mean you should walk away, but it needs careful review. Athi Law’s conveyancing solicitors can explain what a covenant means for your purchase and future plans.

This guide focuses mainly on the law in England and Wales.

What is a restrictive covenant?

A restrictive covenant is a legally binding promise not to use land or a building in a particular way. It is usually created by deed when land is sold or divided, although restrictions can also appear in a lease.

When the legal requirements are met, the covenant may continue to bind future owners. This is why a restriction created many years ago can still matter today.

Common examples include restrictions against:

• Building an extension or another property

• Using the premises for a trade or business

• Parking a caravan, boat or commercial vehicle outside

• Dividing one home into separate units

• Altering the property’s external appearance

Restrictive covenants may affect both leasehold and freehold property. Athi Law’s guide to leasehold and freehold ownership explains why owning the freehold does not give you an unrestricted right to alter or use the land.

A positive covenant is different because it requires action, such as repairing a shared road or paying towards communal facilities. Different enforcement rules can apply, particularly to freehold property.

Where will you find restrictive covenants?

For registered property, restrictive covenants are normally referred to in the title register. The full wording may appear in a transfer, conveyance or other deed mentioned in the register.

Your solicitor should obtain the relevant document because a short register entry may not identify the land that benefits, when consent is required or the exact area affected. This forms part of the title investigation process.

Your solicitor may also consider the seller’s replies, planning records and relevant property searches. A building survey does not replace this legal work. A surveyor may notice an alteration, but will not normally establish whether a covenant is enforceable.

Why does a covenant matter to you?

The importance of a covenant depends on your plans. You may choose a property because the plot appears suitable for a £35,000 extension. If the title prohibits further building without consent, the property may no longer meet your needs.

A covenant may affect:

• Value by limiting development or alternative uses

• Saleability by making the property less attractive to future buyers

• Lending if a breach concerns your mortgage lender

• Costs if consent, legal documents or insurance are needed

• Timing if further enquiries must be resolved before exchange

You should consider covenants alongside easements and other title rights. A separate right of way or easement may also affect access, parking or use of the land.

Can an old covenant still be enforced?

Age alone does not make a restrictive covenant invalid. Some covenants created in the 19th or 20th century may still be enforceable.

The person seeking to enforce it must be legally entitled to the benefit of the covenant. Your solicitor may need to review historic deeds, identify the land intended to benefit and decide whether the restriction binds the property you are buying.

They should also check whether the wording is clear and whether earlier work may already breach the restriction. These questions can become difficult where land has been divided several times, as explained in Athi Law’s guide to complex property transactions.

What can happen if you breach a covenant?

A person entitled to enforce the covenant may apply for an injunction. This could stop proposed work, prevent continued use or require unauthorised work to be reversed. A court may award damages in some cases.

You could also face legal costs, delays and problems selling or remortgaging the property. Planning permission or building regulations approval does not override a restrictive covenant. Planning control and private property rights are separate systems.

What options may be available?

Seek formal consent

Some covenants allow alterations with written consent. The beneficiary may request plans, professional fees, conditions or a payment before agreeing.

Negotiate a release or variation

The parties may enter into a deed that removes the covenant or changes its wording. The document may then need to be registered.

Consider indemnity insurance

Restrictive covenant indemnity insurance may protect against certain financial consequences of enforcement. It does not remove the covenant, authorise a breach or guarantee that work can continue.

Policies contain conditions and exclusions. Contacting a potential beneficiary can affect whether cover is available, so speak to your solicitor first.

Apply to the Upper Tribunal

Under section 84 of the Law of Property Act 1925, an owner of affected freehold or leasehold land may apply to the Upper Tribunal’s Lands Chamber to discharge or modify a restrictive covenant.

Grounds may include the covenant becoming obsolete, agreement by those entitled to its benefit or the restriction impeding a reasonable use without securing a practical benefit of substantial value or advantage. Other legal tests apply, and compensation may be payable.

An application may require legal and valuation evidence, formal notices and a hearing. It is not a quick or guaranteed solution.

Questions to ask before exchange

Before you become legally committed, ask your solicitor:

• Does the covenant affect the whole property?

• Who may have the right to enforce it?

• Does it conflict with your plans?

• Has the seller carried out work that may breach it?

• Will your lender require action or insurance?

Athi Law’s first-time buyer conveyancing guide covers other points to consider before buying.

Frequently asked questions

Does planning permission override a restrictive covenant?

No. Planning permission deals with public planning control. A restrictive covenant is a private property right and can prevent development even where permission has been granted.

Can a neighbour enforce a covenant?

Possibly. A neighbour must normally show that their land has the legal benefit of the covenant and that a breach has occurred. Living nearby is not enough on its own.

Can covenants affect business premises?

Yes. They may restrict trading activities, alterations, development or signage. You may need specialist commercial conveyancing advice.

Get clear advice before you commit

Restrictive covenants are usually easier to address before exchange than after completion. Early advice gives you time to reconsider your offer or explore consent, variation, insurance or another solution.

Athi Law can help you investigate the title, address residential conveyancing challenges and understand restrictions before you buy.

For practical advice tailored to your property and plans, contact Athi Law today. You can also learn more about the firm’s services on the Athi Law website.