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

A break clause is a provision in a fixed-term tenancy agreement that allows one or both parties to end the tenancy early, before the fixed term is up. Not all tenancy agreements include one, but if yours does, it is important to understand how it works, especially when you have disrepair and may want to leave.

What is a break clause?

A fixed-term tenancy, for example, a 12-month or 24-month tenancy, normally runs for its full term. Neither you nor your landlord can end it early unless both agree, unless there is a serious breach, or unless the agreement contains a break clause.

A break clause sets out:

• When the break right can be exercised (for example, after six months into a 12-month tenancy)
• How much notice must be given (usually one or two months)
• Whether the right applies to the tenant, the landlord, or both
• Any conditions that must be met before the clause can be used

When does a break clause apply?

The break clause applies at the break point, the specified date after which either party can give notice. For example, a tenancy might say: "Either party may end this tenancy by giving two months' written notice, exercisable from month six."

In that example, if you wanted to use the break clause, you would need to give your landlord two months' written notice, and the earliest you could leave would be at month eight.

Some break clauses are conditional. Common conditions include:

• Rent must be paid up to date with no arrears
• You must have complied with all terms of the tenancy
• Notice must be served in a specific way (for example, by recorded delivery)

If the conditions are not met, the break clause may not be valid.

Mutual vs. one-sided break clauses

A break clause can be:

• Mutual: both tenant and landlord can exercise it
• Landlord-only: only the landlord can end the tenancy early using the clause
• Tenant-only: only you can exercise it

A landlord-only break clause is generally unfair and may be challenged under the Consumer Rights Act 2015 as an unfair contract term, particularly if it creates a significant imbalance in the parties' rights. If your tenancy has a one-sided break clause in the landlord's favour, you may have grounds to argue it is unenforceable, take advice if this arises.

How to exercise a break clause

To use a break clause correctly:

1. Check the break date and the required notice period
2. Check any conditions (rent paid up to date, notice requirements)
3. Give notice in writing, clearly stating you are exercising the break clause and the date on which you intend to leave
4. Send the notice in the way the tenancy specifies, often by post to the landlord's stated address

If notice is not served correctly, or given too early, the break clause may not take effect. Courts have sometimes held that a notice served even one day too early is ineffective, so check the exact dates carefully.

Break clause and disrepair

If your home has serious disrepair that your landlord will not fix, you may want to use a break clause to leave. However, leaving does not prevent you from making a disrepair claim, you can still claim compensation for the period during which you lived in the disrepair, even after the tenancy ends.

If you are thinking of leaving because of disrepair but are not sure whether you can claim, call us first. Your rights to compensation for past disrepair do not disappear when you move out.

What if my tenancy has no break clause?

If your tenancy agreement has no break clause and you want to leave before the end of the fixed term, your options are:

• Negotiate a surrender with your landlord (they agree to let you leave early, this should be recorded in writing)
• Serve a notice to quit if the fixed term has ended and the tenancy has become periodic
• In some circumstances, for example, serious disrepair that makes the property uninhabitable, there may be grounds to leave without liability for further rent, but this is legally complex and you should take advice first

When should I contact Support for Tenants?

If your home has disrepair and you are thinking about leaving or have already left, call us on 0800 030 4669. You may be entitled to compensation for the period you lived in the disrepair.

No upfront cost. You only pay if you win, and the fee comes out of the compensation. 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