Getting restrictive covenants released in the County Court

A recent Court of Appeal case is going to highlight to developers another route for getting restrictive covenants that prohibit a single dwelling from being converted into multiple residential units released. The normal route is an application to the Lands Tribunal under Section 84 of the Law of Property Act 1925 but it is much simpler to make an application to the County Court under Section 610 of the Housing Act 1985. The Court of Appeal in the case of Lawntown v Camenzuli have just confirmed that the county court has discretion under Section 610 to give permission for a developer to proceed with development notwithstanding a covenant prohibiting a single dwelling from being converted into multiple residential units.

There are 2 criteria that the court can consider in granting permission:

• that changes in the character of the neighbourhood mean that the premises cannot easily be let as a single dwelling house but it could be readily let for occupation if converted into 2 or more dwelling house; or
• planning permission has been granted for conversion into 2 or more separate dwelling houses (instead of a single dwelling house).

The thinking behind this legislation is that the Government is trying encourage an increase in the number of living units in other words allow more intensive use of existing premises. What the courts will have to do with a Section 610 application is weigh up the competing interests of the parties but that can include taking into account matters of public interest. It remains to be seen if developers will exploit this new avenue of challenge.