Break clauses: FAQs for residential tenancy agreements

Some tenancy agreements include a break clause, allowing either the landlord or tenant to end the tenancy early, after a specified amount of time has passed.  

But what is a break clause, and what does it mean for tenants and landlords?  

In this article, we cover some of the most frequently asked questions from both landlords and tenants about break clauses and their use in residential tenancy agreements.  

What is a break clause? 

A break clause is a clause in the tenancy agreement that typically allows the landlord or the tenant to end the tenancy early, usually after a set time period. 

Some landlords include a break clause as standard, while others may only include it upon request from the tenant. Not all tenancies include a break clause. 

An example of a break clause is a one-year tenancy with a six-month break clause. This allows either the landlord or the tenant to end the tenancy early as long as at least six months of it have passed.  

A guide to break clauses for landlords 

How do I write a break clause? 

If you’re using a letting agency, they will likely be able to include a break clause as part of the tenancy agreement. However, landlords can also write their own break clauses into their contracts. 

It’s vital to ensure that your break clause is considered and written carefully so that it is clear and the terms are satisfactory for both the landlord and the tenant. It’s also important to ensure that the tenant understands the break clause and its terms.  

Badly worded or ambiguous break clauses can cause issues for landlords and tenants, leading to litigation – which can be costly. So, it pays to ensure that any break clauses are clear. Our solicitors can assist you with writing break clauses to help minimise this risk.  

Pros of break clauses  

• A break clause gives you the right to take possession of the property back after a set period of time. This can be useful in various situations. For example, if you wish to move back into it yourself, or your relationship with the tenants has broken down and it is in your best interest to reclaim the property. 
• Break clauses are also an attractive option for many tenants who don’t necessarily want to commit to a longer-term lease. Not including one can limit your pool of interested tenants, making it harder to rent out your property or charge the desired amount of rent.  

Cons of break clauses 

• While break clauses are attractive to many tenants, they are also a deterrent for some who may worry they don’t offer as much security as a contract that doesn’t contain one. This may depend on the type of property you are renting out. For example, single professionals who move often may be attracted by a break clause, whilst families looking for stability may be put off.  
• Break clauses can easily lead to disputes between landlords and tenants if they are not clear or exercised properly. This can damage landlord-tenant relations, not to mention be costly if litigation is required. So, landlords should seek legal advice to ensure any break clauses are watertight and minimise the risk of complications. 

How can I enforce the break clause? 

The enforcement of the break clause will depend on how it is worded in the tenancy agreement. So, it’s important to ensure that the clause reflects your wishes for enforcement before the agreement is signed. This is because a signed tenancy agreement is a legally binding contract, and both landlords and tenants must follow its stipulations by law. In other words, if the tenant requests the break clause is activated, the landlord must legally allow this, following the terms set out in the contract.  

How much notice do I have to give to activate a break clause? 

If, as a landlord, you want to activate the break clause, you must give your tenants at least two months’ notice. This is the minimum notice required for assured shorthold tenancies under Section 21, which must be used when starting the eviction process. Section 21 notices also cannot be served before six months of the tenancy have passed. The notice that tenants have to give can vary depending on what is laid out in the contract, however it is usually the same. 

Find out more about Section 21 notices by clicking here.

Do I have to include a break clause if the tenant asks for one? 

Break clauses are not required by law, and landlords do not have to include one. This is the case even if the tenant asks for one to be included. However, it can aid in negotiations with potential tenants, so it may be something you wish to consider, especially if you are struggling to rent a property otherwise.  

A guide to break clauses for tenants 

Do all tenancies have a break clause? 

No. Some landlords include them as standard, but tenancy agreements are not required to include a break clause, and most don’t include them unless they are requested. 

Can I request a break clause in my tenancy? 

Yes, as a tenant you can request that a break clause is included in your tenancy agreement. However, your landlord does not have to agree to the request.  

How early in the tenancy can the break clause be activated? 

The break clause can be implemented after the minimum time period stated in the tenancy agreement. For example, if a one-year tenancy includes a six-month break clause, the minimum amount of time after which the clause can be activated is six months. However, bear in mind that for most tenancies, a minimum of two months’ notice must be given by either the landlord or the tenant if either of them wishes to activate the break clause.  

Your tenancy agreement should also set out when you can give notice to leave (typically at least six months into the tenancy).  

Can I end my tenancy early without a break clause? 

Even if your tenancy does not include a break clause, you may be able to negotiate ending it early with your landlord. This may depend on current market conditions and what your tenancy agreement says. For example, your landlord may be happy to end your tenancy early if you can find a replacement tenant, or they could ask you to continue the tenancy until they can find one. However, as a tenancy agreement is a legally binding contract, you will not necessarily be able to end it early if the landlord doesn’t agree.

How is a break clause implemented? 

If you want to activate the break clause and leave your tenancy early, you must follow the steps stipulated in your tenancy agreement, because a signed tenancy agreement is a legally binding document. Your tenancy agreement should set out when you can give notice and how. Your landlord should be able to provide clarity in writing if you’re unsure.  

Can I be evicted without a break clause? 

Yes, there does not have to be a break clause for your landlord to be able to evict you. If you break your tenancy agreement, your landlord can follow the legal procedures to have you evicted using a Section 8 notice. 

They can also use a Section 21 notice to evict you at the end of an Assured Shorthold Tenancy. You can find out more about Section 21 notices here. 

As a tenant, you have legal protections from unlawful eviction. If you believe you are being unlawfully evicted, our solicitors may be able to assist you.