Q&As

Would it be a breach of the following covenant to use the property for holiday lets: ‘Not to use or permit to be used the property for the carrying on of any trade or business whatsoever and will use the same as a single private dwelling house only’?

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Published on LexisPSL on 16/03/2017

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Would it be a breach of the following covenant to use the property for holiday lets: ‘Not to use or permit to be used the property for the carrying on of any trade or business whatsoever and will use the same as a single private dwelling house only’?
  • Holiday letting use
  • Carrying on a trade

If the lease states that the flat can only be used as a private residential property, then it would be a breach of the lease to use the property for holiday lettings. A residential dwelling is meant to be one which is designed as a dwelling or number of dwellings and is intended for use solely for residential purposes.

The issue of whether a holiday letting could be classed as use for residential purposes was considered in the case of Caradon District Council v Paton and Bussell. Caradon District Council had applied for an injunction to restrain the defendants from letting their properties through short term lets to holidaymakers. The properties had originally been purchased from the council under the right to buy schemes, and they remained subject to covenants which restrained the use of the property for any purpose other than as a private dwelling house. They could not be used for business. The council appealed when the injunction was refused at first instance, and the appeal succeeded.

The Court of Appeal determin

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