A recent High Court decision has helped unlock lands in Newcastle West, County Limerick, for new housing by removing a restrictive covenant that was preventing development.

Background

The High Court has issued its first written judgment on the application of Section 50 of the Land and Conveyancing Law Reform Act 2009 in the matter of Guia Properties Limited v The Paddocks Killeline Management CLG and Nautic Building Company Limited (in liquidation) [2026] IEHC 153.

Guia Properties Limited (Guia) acquired lands which were subject to a 2016 restrictive covenant limiting any potential development on the lands to “…a single private or professional dwellinghouse with the usual out offices…” only. As a result of this restrictive covenant, Guia was prevented from developing a ten-unit housing scheme for which planning permission had been granted.

Guia therefore brought an application pursuant to Section 50 of the Land and Conveyancing Law Reform Act 2009 before the Court requiring an order discharging or modifying the restrictive covenant in circumstances where continued compliance would constitute “…an unreasonable interference with the use and enjoyment of its property”.

Matters considered

During the proceedings, the Court looked at a range of issues before making its decision, including:

  • The purpose of the covenant
  • Changes in the area
  • Planning context
  • Neighbour engagement
  • Public interest
  • Benefit versus interference
Court Findings

The Court found that the restrictive covenant no longer served any useful purpose. Originally imposed for the developer’s commercial benefit, it had been overtaken by changes in the area, which is now surrounded by modern housing and benefits from the planning permission for ten homes. A single dwelling would not be acceptable under current planning policy, local residents raised no objection, and the Court noted the strong public interest in facilitating housing delivery in Newcastle West, a designated Key Town. In those circumstances, the covenant offered no real benefit while unreasonably restricting the proper use of the land. After weighing these factors, the Court decided the covenant was unreasonable and should be removed.

Summary

The High Court’s decision to remove the restrictive covenant clearing the way for much needed housing development sets an important precedent. It signals that outdated covenants cannot be allowed to block modern, reasonable and essential housing especially where planning permission exists and the public interest supports such development.

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