[2024] UKUT 123 (LC)

Section 84(1) of the Law of Property Act 1925 gives the Tribunal power to discharge or modify any restriction on the use of freehold land on being satisfied of certain conditions. The applicant in this case relied on grounds (a) and (c); unless one of these grounds is made out the Tribunal has no jurisdiction to modify or discharge the covenant.

Ground (a) of section 84(1) is satisfied where it is shown that by reason of changes in the
character of the property or neighbourhood or other circumstances of the case that the
Tribunal may deem material, the restriction ought to be deemed obsolete.

The condition in ground (c) is met where it can be shown that the proposed discharge or modification will not injure the persons entitled to the benefit of the restriction.

If the applicants are able establish that the Tribunal has jurisdiction to modify the covenant, they will have only cleared the first hurdle; the Tribunal then has to decide whether or not to do so.

If it does so, the Tribunal may also direct the payment of compensation to any person entitled to the benefit of the restriction. If the applicant agrees, the Tribunal may also impose an additional restriction on the land at the same time as modifying the original restriction.