Working from Home: Navigating Planning Permission and Restrictive Covenants

The rise of flexible working and hybrid working arrangements has transformed how we use our homes. Many people now split their time between the office and home, while others have chosen to run businesses entirely from their residential properties. While this shift offers greater work-life balance, it is essential to understand the legal implications—particularly regarding planning permission and restrictive covenants.

Planning Permission: Do You Need It?

On 26th July 2023, the Department for Levelling Up, Housing and Communities updated its guidance on working from home. The guidance confirms that planning permission is not usually required, provided that home working remains incidental to the primary residential use of the property.

However, where there is a material change of use, such as increased traffic, noise or client visits, planning permission may be necessary. Whether a material change of use has taken place is a matter of fact and degree and will be determined on the individual merits of a case. Key factors that local authorities consider include:

• Change in Property Use – If your home is no longer mainly used as a private residence.
• Increased Traffic or Visitors – If clients, suppliers, or employees regularly visit.
• Unusual Activities – If your work involves processes that wouldn’t typically occur in a residential area.
• Disturbances – If there is noise, smells, or working hours that disrupt neighbours.

For example, using a spare room as an office under a hybrid working model is unlikely to require planning consent. However, running a business full-time from home, especially one attracting frequent visitors or deliveries, may be considered a material change of use.

More details on planning requirements for home-based work can be found on the Planning Portal.

Restrictive Covenants: What Are They?

Even if planning permission is not needed, restrictive covenants in your property’s title deeds might still prohibit business use. These are legal agreements that restrict how a property can be used. Many modern residential estates include covenants that limit commercial activity, such as:

“No trade, business, or profession shall be carried out upon the plot, and the plot shall not be used for any purpose other than as one private dwelling.”

A recent case, Hodgson & Anor v Cook & Ors [2023] UKUT 41 (LC), highlighted the importance of these covenants. In this case, a homeowner wanted to operate a beauty therapy business from a garden cabin, seeing three to four clients daily, six days a week.

The Upper Tribunal declined to modify the covenant, ruling that:

• The covenant was not intended to prevent occasional home working, such as using a laptop in a spare room under a hybrid model.
• However, full-time business operations from home, particularly those generating increased traffic and parking, could breach the covenant.
• The residential nature of the neighbourhood was a key factor in the decision.

More information on this case can be found on Wilberforce Chambers.

Key Considerations Before Working from Home

Before committing to working remotely or running a business from home, consider the following:

• Check Your Title Deeds – Look for restrictive covenants that might limit business use.
• Assess Your Business Impact – Will it increase traffic, noise, or deliveries?
• Consult Your Local Planning Authority – If in doubt, check if planning permission is needed.
• Review Your Mortgage or Lease – Some mortgage agreements and rental contracts have restrictions on business use.

How Butcher & Barlow can assist

With hybrid working and flexible working now the norm, more people are using their homes for business activities. However, overlooking planning regulations or restrictive covenants can lead to legal disputes with local authorities, neighbours, or property developers—often resulting in lengthy and costly proceedings.

The best way to avoid disputes before they arise is to seek advice before you begin working from home. By understanding the legalities before making changes to how you use your home for work, you can ensure compliance and prevent unnecessary complications down the line.

At Butcher & Barlow, we offer both guidance and dispute resolution services to help you navigate planning laws and restrictive covenants with confidence. Our Property and Property Dispute Resolution Teams can assist whether you are proactively seeking advice to ensure compliance or already facing a legal challenge.

If you are considering working from home or running a business from your property, or if you’re already facing a legal challenge, contact us today for expert guidance.

Jill Benbow, Property Dispute specialist can be contact on 01606 334309 or jbenbow@butcher-barlow.co.uk

 

 

 

The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.