Property & Real Estate Barristers
The City of Westminster v Kothari LON/00BK/LBC/2019/0087
30th April 2020
Summary
The subletting of a flat via Airbnb and Booking.com constituted a breach of a covenant against business user and a breach of covenant that the premises be used for private residential purposes only.
Facts
The Applicants are the freehold owners of Cameron House (“the Property”). The Respondent is the long leaseholder of a flat within the Property (“the Flat”)
The Lease prohibited the Respondent using the Flat:
“for any trade profession or business whatsoever but to keep and use the Demised premises as a single private flat for residential purposes only”
The Applicant alleged that Respondent had been advertising, and indeed, subletting the Flat for use by paying guests through both Booking.com and Airbnb platforms on a short-term, holiday let basis. Screenshots of the online adverts were provided in evidence.
The Respondent did not attend the hearing.
Issues
Had the Respondent been subletting the Flat in breach of covenant?
Decision
The Tribunal was satisfied that the Respondent was in breach of the covenant set out above not to use the Flat for business purposes and not to use it for other an private residential purposes only.
Comment
This case is a reminder that letting a flat on a short-term, holiday basis is likely to constitute a breach of the usual prohibitions against using the premises as a business and any requirement that it be used as a private dwelling only.
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