Break clause in a tenancy agreement: what it is and how it works

A break clause is a term in a fixed-term tenancy that lets one or both sides end the tenancy early, before the fixed term is up. Not every tenancy has one. If yours does, it pays to understand how it works, especially if your home has disrepair and you want out.

What is a break clause?

A fixed-term tenancy, say 12 or 24 months, normally runs its full course. Neither you nor your landlord can end it early unless you both agree, unless someone seriously breaks the terms, or unless there is a break clause.

A break clause sets out:

• When the break right kicks in (for example, six months into a 12-month tenancy)
• How much notice you must give (usually one or two months)
• Whether the right belongs to the tenant, the landlord, or both
• Any conditions that must be met before it can be used

When does a break clause apply?

The break clause works from the break point, the date after which either side can give notice. A tenancy might say: "Either party may end this tenancy by giving two months' written notice, exercisable from month six."

In that example, you would give your landlord two months' written notice, and the earliest you could leave is month eight.

Some break clauses come with conditions. Common ones:

• Rent must be fully up to date
• You must have kept to all the tenancy terms
• Notice must be served a specific way, for example by recorded delivery

If the conditions are not met, the break clause may not work.

Mutual vs. one-sided break clauses

A break clause can be:

• Mutual: both tenant and landlord can use it
• Landlord-only: only the landlord can end early
• Tenant-only: only you can

A landlord-only break clause is generally unfair. It may be challengeable under the Consumer Rights Act 2015 as an unfair contract term, especially where it tilts the rights heavily one way. If your tenancy has one, you may be able to argue it is unenforceable. Take advice if it comes to that.

How to exercise a break clause

To use a break clause properly:

1. Check the break date and the notice period
2. Check the conditions: rent up to date, how notice must be served
3. Give notice in writing. Say clearly that you are using the break clause and the date you intend to leave.
4. Send it the way the tenancy says, often by post to the landlord's stated address

Get the details right. Courts have ruled that a notice served even one day too early does not count. Check the exact dates carefully.

Break clause and disrepair

If your home has serious disrepair your landlord will not fix, you may want to use a break clause to leave. Leaving does not kill your claim. You can still claim compensation for the time you lived with the disrepair, even after the tenancy ends.

Thinking of leaving because of disrepair, but not sure whether you can claim? Call us first. Your rights over past disrepair do not vanish when you move out.

What if my tenancy has no break clause?

If there is no break clause and you want to leave before the fixed term ends, your options are:

• Negotiate a surrender: the landlord agrees to let you go early. Get it in writing.
• Serve a notice to quit, if the fixed term has ended and the tenancy has gone periodic
• In some cases, such as disrepair so serious the home is unlivable, there may be grounds to leave without owing more rent. This is legally complex. Take advice first.

When should I contact Support for Tenants?

If your home has disrepair and you are thinking of leaving, or already have, call us on 0800 030 4669. You may be owed compensation for the time you lived with the disrepair.

No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• Housing Act 1988 (legislation.gov.uk)
• Landlord and Tenant Act 1985, Section 11 (legislation.gov.uk)

Related articles

• How do I end my tenancy?
• What is a periodic tenancy?
• How to read your tenancy agreement
• Tenancy agreement unfair terms