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Wednesday, 3 October 2023

Ending a tenancy - private renting

Whether you are a landlord or tenant, it is important you know your legal rights and duties when you wish to end a tenancy or licence agreement. Find out about giving notice and ending a tenancy or licence correctly.

Ending a tenancy or licence if you are a landlord

If you want to end any tenancy or licence and get your property back, you must give your tenant notice of when you want the tenancy or licence to end. The type of notice and the time period you must allow will depend on the type of tenancy or whether it is a licence or not.

Ending a tenancy - serving a 'notice to quit'

You must inform your tenant in writing that you want the property back and the latest date by which they must leave it. The length of the notice period you give depends on the type of tenancy (or licence) and the reason why you are asking your tenant to leave. As a general rule, the period is not less than two weeks and is often two months. When the tenancy is an excluded tenancy (for example when the tenant shares facilities with you) the notice period must be reasonable.

For many tenancies, the notice you give must be in a particular form which includes certain information and warnings. You can obtain a standard form of notice to quit from legal stationers.

You have an automatic right to possession at the end of an assured shorthold tenancy, as long as you have given your tenant two months' notice to quit.

Ending a licence agreement

Your tenant may have a licence if they do not have exclusive use of their accommodation - for example, if you have unrestricted access to the part of the property they are using. You can end a licence by serving a 'notice to quit'. The notice period will depend on the agreement, but often at least four weeks' notice is required.

If your tenant has an excluded tenancy or licence (for example if they live with you, or in a holiday letting or a hostel) you only need to give 'reasonable notice'.

Ending a tenancy early

If you are seeking possession because your tenant has not paid the rent or has broken one of the other terms of the tenancy agreement, different rules apply, depending on which type of tenancy your tenant has. For example, if the tenancy is an assured tenancy, you will need to use one of the reasons or 'grounds' for possession in the Housing Act 1988.

If you use one of the grounds from the Housing Act 1988, either two or four weeks' notice may be required. Some grounds are mandatory – this means the court has no choice but to make a possession order if it is satisfied that the ground exists.

Examples of mandatory grounds include:

  • more than eight weeks' rent arrears (unpaid rent)
  • repossession by mortgage lender (eg the property you own and rent out is being repossessed)

Other grounds are 'discretionary' – this means the court will look at the reasons and decide if a possession order is fair.

Examples of discretionary grounds include if the tenant:

  • often pays rent late or does not pay rent
  • breaks the terms of the tenancy agreement
  • is a nuisance to neighbours
  • uses the property for illegal purposes (for example, dealing drugs)

If the tenancy is regulated, possession can only be sought using one of the grounds in the Rent Act 1977.

Break clauses

If there is a break clause in the tenancy agreement, you can then give notice (usually two months) at any point, which ends the tenancy early.

However, a landlord does not have a guaranteed right to possession during the first six months of the tenancy.

Getting your property back

If your tenant leaves the property within the notice period, you can re-enter your property, and will not need to contact the courts for assistance.

If the notice period expires and your tenant has not left the property, you will need to start the process of eviction through the courts. You must not forcibly remove your tenant without an eviction order.

Ending a tenancy or licence if you are a tenant

If you wish to move out of your rented property, you should give your landlord written notice that you want to end the tenancy agreement. You can't simply walk away or post the keys through the letterbox. This is called 'abandonment' and will not end your tenancy agreement.

Your tenancy agreement should say how much notice you need to give your landlord before you leave the property. If there is nothing in the tenancy agreement about ending your tenancy, you may not have to give any notice.

You can end a fixed-term tenancy by giving your landlord written notice up to two months before the tenancy ends. Your tenancy will then finish at the end of the fixed-term.

You can end a periodic tenancy (a rolling tenancy when a set term ends) by giving notice at the end of a rent period (at the end of a week or month). You can find details on how to end your tenancy in your tenancy agreement. You can also ask your landlord how to end your tenancy.

You may have a licence instead of a tenancy if, for example, you rent a property but do not have exclusive use of the accommodation and your landlord has unrestricted access to the property. If your licence automatically runs out after a specific date and you want to end the agreement, you should let your landlord know this before your licence runs out.

Ending a tenancy early

You may be able to agree with your landlord to end your tenancy early.

If you have a fixed-term tenancy (one that runs for a certain period) and there is nothing in the tenancy agreement about ending the tenancy early, you may have to pay your landlord compensation to get out of the contract. The compensation amount could be for the remaining amount of rent left on the tenancy, but may be less if your landlord can find a new tenant before your tenancy was due to run out.

If there is a 'break clause' in your tenancy agreement, you can end the tenancy early by giving notice at any point. However, a landlord does not have a guaranteed right to possession during the first six months of the tenancy. A break clause gives you the option to leave early, but also gives less long-term security.

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