What is a property covenant?

A covenant is a legal obligation attached to land ownership. It is usually set by a previous landowner or developer to control how the land or property is used in the future. Most covenants apply in perpetuity, which means they remain in place even when the property changes hands.

What is a Covenant?

A covenant is a legal obligation attached to land ownership. It is usually set by a previous landowner or developer to control how the land or property is used in the future. Most covenants apply in perpetuity, which means they remain in place even when the property changes hands.

The Two Types of Property Covenant

There are two main kinds of covenants in UK property law: positive and restrictive.

Positive Covenants

A positive covenant requires the property owner to do something - for example, to maintain or contribute to the upkeep of part of the property or land. These are known legally as burdens, because they impose ongoing obligations.

Common examples include:

• Maintaining shared driveways, boundaries, or fences
• Contributing to communal maintenance costs
• Repairing a shared roof or access road

Restrictive Covenants

A restrictive covenant limits what the property owner can do with their land. It “runs with the land”, meaning it remains enforceable by whoever benefits from it, such as a neighbour, developer, or residents’ association.

Examples include:

• Banning extensions or new structures without consent
• Preventing conversion of a single house into flats
• Restricting commercial use or business operations on residential land
• Prohibiting livestock from being kept on the property

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Why Are Property Covenants Needed?

Covenants are used by landowners to give some control over how the land they are selling will be used or will look like. They may date from the time when an initial sale of land is made, perhaps from a greenfield site to a residential development. The person or party selling the land may insert a restrictive covenant to ensure that the area remains purely residential, or that building alterations, if permitted, are true to the character of the area.

What Happens If You Break a Property Covenant?

Breaching a covenant can result in serious financial and legal consequences. The person or organisation benefiting from the covenant can:

• Demand that the breach be reversed (for example, by demolishing unauthorised work)
• Seek financial compensation for loss of benefit
• Take legal action to enforce the covenant

For example, if you build an extension that breaches a restrictive covenant, you may be required to remove it entirely. It’s therefore vital to check your deeds and seek legal advice before carrying out any building work or business activity on the property.

Can you change or remove covenants?

If you discover a covenant on your property deeds and think it is unreasonable, you can make an application to the Lands Chamber of the Upper Tribunal to have it modified or discharged, but this can be costly and time consuming. In some cases, because the person who benefits from the covenant being in place will face losses from its removal, you may have to pay compensation, as well as legal fees.

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