What Is a Covenant on a Property?

At Towerstone, we provide specialist property accountancy services for homeowners, landlords, and property investors. We have written this article to explain what covenants are and how they affect use, helping you make informed decisions.

Covenants are one of those legal terms that often appear in conveyancing paperwork with very little explanation. Many buyers skim past them assuming they are historic or irrelevant, only to discover later that a covenant affects what they can do with their home. Others hear the word covenant and immediately worry that it will stop them living normally in the property.

In reality, a covenant on a property is neither automatically harmless nor automatically restrictive. It is a legal obligation attached to the land, and whether it matters depends entirely on what the covenant says, who can enforce it, and how it applies in practice today.

In this article, I will explain clearly and practically what a covenant on a property is, the different types of covenants you may encounter in the UK, how they are enforced, and when they are likely to be an issue. This is written in clear UK English and reflects how covenants work in real transactions rather than just in theory.

The basic definition of a property covenant

A covenant on a property is a legal promise that affects the land rather than the individual owner. It is an obligation written into the property’s title that binds current and future owners.

This means that when you buy a property with a covenant, you are agreeing to be bound by it, even if it was created decades or even centuries ago. The covenant travels with the land, not with the person who originally agreed to it.

Covenants are recorded in the property’s title documents and are usually revealed during the conveyancing process.

Why covenants exist at all

Covenants exist to control how land is used and to protect value, appearance, or enjoyment of neighbouring land.

Historically, they were used by landowners and developers to maintain standards across estates, prevent undesirable uses, and protect neighbouring properties.

In modern terms, they are a way of balancing individual ownership with wider interests.

Some covenants are still very relevant. Others are outdated and rarely enforced.

The two main types of covenants

Property covenants fall into two broad categories.

Restrictive covenants tell you what you must not do.
Positive covenants tell you what you must do.

Understanding the difference is crucial because they operate very differently in law.

Restrictive covenants explained simply

Restrictive covenants limit how a property can be used or altered.

They usually start with wording such as “not to” or “shall not”.

Common examples include restrictions on building extensions, running a business from the property, changing the external appearance, parking certain vehicles, or using the property for anything other than a single private dwelling.

Restrictive covenants are the most common type encountered in residential property.

Examples of restrictive covenants you might see

Some typical restrictive covenants include:

• Not to build any additional structures without consent

• Not to carry on any trade or business from the property

• Not to alter the external appearance without approval

• Not to erect fences or walls beyond a certain height

• Not to use the property for anything other than a private dwelling

Some of these are very specific, others are broad and vague.

Positive covenants and how they differ

Positive covenants require the owner to do something rather than refrain from doing something.

Examples include obligations to maintain a shared driveway, contribute to the upkeep of communal areas, or repair boundary features.

In residential freehold property, positive covenants are less straightforward because they do not always bind future owners in the same way as restrictive covenants.

This distinction is technical, but it matters when assessing enforceability.

Why restrictive covenants matter more in practice

Restrictive covenants are generally enforceable against future owners, provided certain legal conditions are met.

This is why buyers and lenders pay close attention to them.

Positive covenants often require additional legal mechanisms, such as chains of indemnity or management arrangements, to ensure they continue to be enforced.

In everyday conveyancing, restrictive covenants are usually the main concern.

Who can enforce a covenant

A covenant is only enforceable if there is someone with the legal right to enforce it.

This is known as the beneficiary of the covenant.

The beneficiary may be:

• A neighbouring property owner

• A developer or original landowner

• A management company

• Occasionally a local authority

If there is no identifiable beneficiary, or if the benefit has been lost over time, enforcement may be unlikely or impossible.

Why old covenants can still matter

Many covenants are very old, sometimes dating back over 100 years.

Age alone does not make a covenant invalid.

If the covenant still benefits identifiable land and has not been legally released or overridden, it can still be enforceable.

That said, very old covenants are often ignored in practice because circumstances have changed or enforcement is impractical.

How covenants appear in the buying process

Covenants are usually revealed when your solicitor reviews the title register and any historic deeds referred to in it.

They are often summarised in the title register, sometimes with full wording set out in attached documents.

Your solicitor should explain any covenants that affect the property and highlight those that may restrict your intended use.

When a covenant is likely to be a problem

A covenant becomes a real issue when it conflicts with what you want to do with the property.

For example, if you plan to extend but there is a covenant restricting building, or if you plan to run a business from home but there is a covenant prohibiting trade.

Problems can also arise if previous owners have breached a covenant and the breach has not been resolved.

In these cases, buyers and lenders may be concerned about enforcement risk.

Breach of covenant explained

A breach of covenant occurs when the property is used in a way that violates the terms of the covenant.

This might include building an extension without required consent, changing the use of the property, or altering its appearance contrary to the restriction.

Breaches can be historic or recent.

Historic breaches are very common and are often dealt with pragmatically during a sale.

What happens if a covenant is breached

If a covenant is breached and the beneficiary chooses to enforce it, they may seek legal remedies.

These can include an injunction requiring the breach to be reversed or damages to compensate for loss.

In practice, enforcement is often rare, particularly for historic breaches, but the risk cannot be ignored entirely.

This is why lenders take covenants seriously.

Indemnity insurance and covenants

One common solution where a covenant has been breached or where consent is missing is indemnity insurance.

This type of insurance does not remove the covenant or legalise the breach. Instead, it provides financial protection if enforcement action is taken in the future.

Indemnity insurance is widely used in UK conveyancing and is often acceptable to lenders where the risk is considered low.

It is usually a one off cost paid at completion.

A key rule about indemnity insurance

If indemnity insurance is being considered, you must not contact the beneficiary of the covenant or seek retrospective consent.

Doing so usually invalidates the possibility of insurance.

This is why legal advice should always be taken before trying to resolve covenant issues informally.

Covenants and planning permission are not the same

A very important point that causes confusion is that planning permission does not override a restrictive covenant.

You can have planning permission for an extension and still be in breach of a covenant that prohibits building.

Planning law and property law operate separately.

This means you must consider both planning permission and covenants before carrying out works.

Can covenants be removed or changed

In some cases, covenants can be removed or modified.

This may be possible where:

• The beneficiary agrees to release the covenant

• The covenant no longer provides practical benefit

• Circumstances have changed significantly

Applications can sometimes be made to the Upper Tribunal to modify or discharge covenants, but this process is time consuming and expensive.

For most residential buyers, insurance or acceptance of risk is more practical.

Covenants on new build estates

Covenants are very common on new build estates.

Developers use them to maintain appearance and prevent undesirable uses.

These covenants are often enforced by management companies and can remain active for many years.

Examples include restrictions on parking commercial vehicles, altering front gardens, or installing satellite dishes without approval.

Buyers should read these carefully, as enforcement is often more likely in modern developments.

Covenants on older properties

Older properties often have covenants that are broad and vague.

Some are clearly outdated, such as restrictions on using the property as anything other than a single dwelling when surrounding properties are now mixed use.

While these covenants may still exist legally, enforcement is often unlikely.

This does not mean they should be ignored, but they should be assessed realistically.

How lenders view covenants

Mortgage lenders are primarily concerned about risk to the value of their security.

They will usually be comfortable with standard restrictive covenants that are common to residential property.

They are more cautious where there is a known breach, uncertainty about enforceability, or where the covenant severely restricts use.

In such cases, lenders may require indemnity insurance or clarification before releasing funds.

Covenants and everyday living

Most homeowners live happily in properties with covenants without ever thinking about them.

Many covenants do not affect normal residential use.

Problems usually arise only when owners want to make changes, such as extensions, conversions, or changes of use.

Understanding covenants early avoids frustration later.

What buyers should ask themselves

When reviewing covenants, buyers should consider:

• Do I plan to extend or alter the property

• Do I plan to run a business from home

• Do I plan to change the external appearance

• Do I plan to subdivide or let the property

If the answer to any of these is yes, covenants deserve closer attention.

What sellers should know about covenants

Sellers should be aware that covenants can affect marketability.

If there has been a breach, it is better to address it early with your solicitor rather than wait for a buyer to discover it.

Being proactive can prevent delays and renegotiation.

Common misconceptions about covenants

There are several myths worth clearing up.

Covenants do not automatically expire with age.
Planning permission does not override covenants.
Not all covenants are enforceable.
Most covenants do not affect everyday living.

Understanding these points helps buyers and sellers stay calm.

Practical advice when covenants are involved

The most practical approach is to take covenants seriously but not fear them.

Read them carefully, discuss them with your solicitor, and assess whether they affect your plans.

In many cases, the solution is straightforward, and the risk is low.

Final thoughts from real world experience

So, what is a covenant on a property. It is a legal promise attached to the land that controls how it can be used or maintained.

In my experience, covenants cause far more anxiety than actual problems. Most buyers never breach them, and most covenants are never enforced.

The issues arise when people do not understand what they are agreeing to or assume covenants do not matter at all.

Covenants are not something to ignore, but they are rarely something to panic about. Understanding them properly is what allows you to buy with confidence and avoid surprises later on.

If you would like to explore related property guidance, you may find what is a house in multiple occupation and what is a housing association useful. For broader property guidance, visit our property hub.