A Guide to Restrictive Covenants

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Apr 18
2 min read

Updated: May 7

When purchasing a new build home in the UK, many buyers are excited about the prospect of a fresh start in a brand new property. However, amid the excitement, its important to understand the legal obligations that can come attached to the land your property sits on - one of the most significant being restrictive covenants.

In this article, we'll explain what restrictive covenants are, why they are used on new build developments, and what homeowners should be aware of.

What Are Restrictive Covenants?

Restrictive covenants are legally binding conditions written into the deeds of a property. They limit how a property owner can use the land or buildings. These covenants often bind not just the first buyer, but all future owners unless successfully challenged or removed.

Common Examples of Restrictive Covenants in New Builds

Prohibit certain alterations (e.g., annexes and extensions).
Control external appearance changes.
Prevent running a business from home.
Ban installation of satellite dishes.
Obligate payment of estate maintenance fees.

Why Are Restrictive Covenant Used?

Developers include restrictive covenants to:

Maintain a consistent aesthetic.
Protect property values.
Ensure neighbourly behaviour.
Manage shared facilities and costs.

What Happens If You Breach a Restrictive Covenant?

Breaching a covenant can lead to:

Legal action to reverse unauthorised changes.
Financial penalties or damages.
Injunctions against prohibited activities.

Always check the covenants and consult your developer before making changes.

Can Restrictive Covenants Be Challenged or Removed?

Homeowners can:

Negotiate directly with the beneficiary/developer to remove or modify the covenant.
Apply to the Upper Tribunal (Lands Chamber) to discharge or alter it.

Legal advice is recommended, as the process can be complex.

What Should New Build Buyers Do?

New build buyers should: