Purchasing a property subject to a s.157 restrictive covenant

 What is a s.157 restrictive covenant?

A s.157 restrictive covenant prevents the sale of a house to a purchaser without the written consent of the relevant local authority or housing association. Subject to some limited exceptions, consent will only be granted where the purchaser has lived or worked in the relevant local area for a qualifying period (usually 3 years prior to the application for consent).  They were originally imposed by local authorities under s.157 of the Housing Act 1985 in respect of council houses located in a national park, an area of outstanding natural beauty or an area designated as a rural area and sold under the right to buy. The purpose of the restriction is to preserve affordable housing for local people. 

When might consent be required from LiveWest?

LiveWest acquired the housing stock of various local authorities under large scale voluntary transfers in the 1990s (see table below).

If you are buying an ex-council house formerly owned by one the above local authorities and it was bought from LiveWest (or one of its predecessor companies*) after the date of the relevant stock transfer then you may need LiveWest’s consent.

If the house you are buying was bought from one of the above listed local authorities under the “right to buy”  before the relevant stock transfer date, you will need to contact that local authority to find out what restrictions apply and how to apply for consent.

Not all former council houses in South Hams, Cornwall and West Devon will be subject to this restrictive covenant – this will depend on whether a house is in a designated rural area, area of outstanding natural beauty or national park.

You should take independent legal advice if you are unsure about what restrictions might affect a property that you own or are looking to purchase.